|
30-year mortgages fall to lowest rate
in 3 months, 6.45%
Associated Press
WASHINGTON - Rates on 30-year mortgages have fallen
to the lowest level in three months, according to a national
survey by Freddie Mac.
The mortgage company's survey found that 30-year, fixed-rate
mortgages averaged 6.45 percent for the week ending yesterday.
That was down from 6.52 percent for the week ending Aug.
23 and was the lowest level since the week of May 31,
when rates stood at 6.42 percent.
The moderation provides welcome news for prospective
homebuyers, many of whom are finding it harder to obtain
loans as lenders tighten borrowing standards in the face
of rising loan delinquencies.
Rates in other mortgage categories were mixed last week.
Rates on 15-year fixed-rate mortgages, a popular choice
for refinancing, averaged 6.12 percent, down from 6.18
percent last week.
But rates on five-year adjustable-rate mortgages (ARMs),
rose slightly to 6.35 percent, compared with 6.34 percent
last week.
Rates rose more steeply for one-year adjustable-rate
mortgages, climbing to 5.84 percent, from 5.6 percent
last week.
The big drop in 30-year mortgage rates followed the
Aug. 17 decision by the Federal Reserve to slice its
discount rate, the interest it charges to make direct
loans to banks. That move was designed to calm recent
turmoil on Wall Street about a spreading credit crunch.
Many economists believe the Fed will soon decide to
cut its more economically significant federal funds rate,
a key benchmark for millions of consumer and business
loans.
The mortgage rates do not include add-on fees known
as points. Thirty-year mortgages and 15-year mortgages
each carried a nationwide average fee of 0.5 point. Five-year
adjustable-rate mortgages had an average fee of 0.6 point
while one-year ARMs carried an average fee of 0.8 point.
A year ago, rates on 30-year mortgages stood at 6.44
percent, 15-year mortgages were at 6.14 percent, five-year
adjustable-rate mortgages averaged 6.11 percent and one-year
ARMs were at 5.59 percent.
After a five-year boom, sales of new and existing homes
fell sharply last year. The slump has gotten worse
this year as lenders have tightened standards.
|
