By Julie Haviv

NEW YORK(Reuters) - Interest rates on 30-year
fixed-rate mortgages fell in the latest week, real estate
website Zillow.com said on Tuesday.

Low rates on mortgages should continue to boost home loan
refinancing activity and put more cash into consumers' hands to
funnel into the economy. They also make homes more affordable
as the housing market copes with slumping sales.

Mortgage rates on 30-year fixed mortgages, the most widely
used loan, were 4.26 percent Tuesday afternoon, down from 4.29
percent at the same time last week, according to Zillow
Mortgage Marketplace.

The rate was the lowest reported reported since Zillow
Mortgage Marketplace launched in April 2008.

The 30-year fixed mortgage rate hovered near 4.27 percent
for the majority of the week it then spiked to 4.31 percent on
Monday, followed by a sharp fall to the current rate, Zillow
said.

Interest rates on other types of mortgages were mixed.

Fifteen-year fixed mortgage rates were 3.82 percent, down
from 3.85 percent the prior week. Rates for 5/1 adjustable-rate
mortgages, or ARMs, set at a fixed rate for five years and
adjustable each following year, were 3.29 percent, up from 3.26
percent the prior week.

Zillow's rates are based on thousands of custom mortgage
quotes submitted daily to anonymous borrowers through the
website. They are not marketing rates, or a weekly survey.

Mortgage rates are linked to yields on Treasuries and
yields on mortgage-backed securities. Yields move inversely to
price.

Treasuries have rallied as weak economic data caused
investors to stampede into safe-haven long-dated U.S. debt.