NATION

NATION

Economic news sends crude prices tumbling

HOUSTON — Crude prices tumbled Wednesday after a raft of economic news that painted an ugly picture of the nation’s economy, suggesting demand for energy will continue to erode.

Light, sweet crude for February delivery fell $3.63 to settle at $35.35 in a shortened day of trading. Prices fell as low as $35.13 just before the market closed for the holiday.

Investors expecting more evidence of slowing U.S. energy demand got a bit of a surprise as the Energy Department reported crude inventories dropped last week.

30-year mortgage rates fall to a record low

WASHINGTON — Rates on 30-year fixed-rate mortgages fell to a record low for the second straight week, causing refinancing applications to surge to the highest level in more than five years, a month after the Federal Reserve pledged to channel billions to prop up the sinking U.S. housing market.

Freddie Mac, the mortgage company, reported Wednesday that average rates on 30-year fixed-rate mortgages dropped to 5.14 percent this week, down from the previous record of 5.19 percent, set last week. The rate was the lowest since Freddie Mac’s weekly mortgage rate survey began in April 1971 and the eighth straight week of declines.

The average rate on a 15-year fixed-rate mortgage dropped to 4.91 percent from 4.92 percent last week, Freddie Mac said.

Associated Press