30-year mortgage rates hit record low 4.85%

Rates on 30-year mortgages fell this week to the lowest level on record after the Federal Reserve launched a new effort to assist the staggering U.S. housing market. Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85 percent this week, from 4.98 percent last week. It was the lowest in the history of Freddie Mac's survey, which dates to 1971 and was down a full percentage point from a year ago. The previous record low of 4.96 percent was set in the week of Jan. 15. Rates fell after the Fed said last week that it will pump $1.2 trillion into the economy in an effort to lower rates on mortgages and loosen credit.

As demand plummets, Agilent to lay off 2,700 Agilent Technologies Inc. said Thursday it will lay off 2,700 workers and halt share buybacks as the scientific-instrument maker struggles with a huge drop in demand. The Santa Clara, Calif.-based company expects revenue in its electronic-measurement segment to drop 30 percent in fiscal 2009 -- the lowest level in its 10-year history. Revenue in its chip and board test segment is expected to fall 50 percent from the 2008 level, and 65 percent from its peak volume. Agilent is cutting annual costs by $300 million in its electronic-measurement segment and by $10 million in its chip and board test segment.

Southwest, attendants have tentative deal Southwest Airlines Co. said Thursday it reached a tentative deal that provides raises for its 9,800 flight attendants. The company said the four-year contract was reached with Local 556 of the Transport Workers Union, which represents the attendants. Details of the terms were not disclosed. Dallas-based Southwest now has tentative or approved labor agreements with nearly all its unionized workers, including pilots and mechanics. The union said the agreement for flight attendants included pay raises, an increase in contributions to workers' 401(k) retirement plans and improvements in leave and job security. The union said it made no economic concessions.

Morgan Stanley, Mitsubishi to merge units Morgan Stanley and Mitsubishi UFJ Financial Group unveiled plans on Thursday to merge their Japanese brokerage units into a new securities company gunning for industry dominance. Japan's biggest banking group, known as MUFG, will control the combined entity with a 60 percent stake. New York-based Morgan Stanley will own the rest of the yet-unnamed firm, expected to be the country's second-largest brokerage by nonconsolidated net revenue. Since MUFG gave Morgan Stanley a $9 billion lifeline in October in the wake of Lehman Brothers' collapse, the two companies have been examining ways to propel their alliance.