Mortgage rates declined for the second straight week in Freddie Mac’s mortgage survey, thanks to the real estate slowdown and tamer inflation, while reported that rates stood still, the companies announced today.

In Freddie Mac’s survey, the 30-year fixed-rate mortgage fell this week to an average 6.4 percent, down from last week when it averaged 6.43 percent. The 15-year fixed-rate mortgage also declined during the period, falling from 6.11 percent to 6.06 percent.

Points, which are fees charged by lenders for loan processing expressed as a percent of the loan, averaged 0.5 on the 30- and 15-year loans.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 6.08 percent this week, with an average 0.5 point, down from last week when it averaged 6.1 percent. The one-year Treasury-indexed ARM averaged 5.54 percent, with an average 0.8 point, down from last week when it averaged 5.6 percent.

“A slowing housing market and signs that inflation is leveling off have helped to lower mortgage rates lately and keep them more affordable,” said Frank Nothaft, Freddie Mac vice president and chief economist. “For example, housing starts dropped to a three-year low in August, and the Producer Price Index fell below market expectations.

“Going forward, the economy is expected to expand at a somewhat slower rate than it did in the first half of the year. This should continue to keep inflation in check, and therefore, mortgage rates low.”

In’s survey, mortgage rates were unchanged, holding at six-month lows, as the Federal Open Market Committee wrapped up a regularly scheduled meeting on monetary policy Wednesday. The average 30-year fixed mortgage rate remains at 6.44 percent, the lowest since March 29, and these loans had an average of 0.3 discount and origination points.

The average 15-year fixed-rate mortgage popular for refinancing held at 6.12 percent, reported. On larger loans, the average jumbo 30-year fixed rate inched higher to 6.7 percent. Adjustable-rate mortgages were mixed, with the average 5/1 ARM holding at 6.19 percent and the average one-year ARM increasing to 5.96 percent.

Since the Federal Reserve’s rate-setting committee last raised interest rates in June, fixed mortgage rates have declined nearly one-half percentage point, according to Amid slower economic growth and with the Fed in pause mode, there is increasing speculation that the next move may be to cut rates. But before that happens, inflation must subside to levels at which the Fed is comfortable. Bond investors are behaving as if inflation is already under wraps, which has benefited mortgage borrowers via falling rates — fixed mortgage rates are closely related to yields on long-term government bonds.

The following is a sampling of’s average 30-year-mortgage interest rates this week in some U.S. metropolitan areas:

New York – 6.39 percent with 0.06 point

Los Angeles – 6.45 percent with 0.45 point

Chicago – 6.55 percent with 0.05 point

San Francisco – 6.48 percent with 0.21 point

Philadelphia – 6.45 percent with 0.41 point

Detroit – 6.5 percent with 0.01 point

Boston – 6.47 percent with 0.14 point

Houston – 6.39 percent with 0.53 point

Dallas – 6.4 percent with 0.45 point

Washington, D.C. – 6.3 percent with 0.68 point

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
The best of real estate is gathering in Las Vegas NEXT month! Grab your ticket before prices go up on October 1.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription