Industry News

Home prices fall, mortgage rates follow

30- and 15-year loans hit 6-month lows

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Mortgage rates fell further this week to lows not seen since March on news that home prices are down from year-ago levels, according to surveys conducted by Freddie Mac and In Freddie Mac's survey, the 30-year fixed-rate mortgage dropped to an average 6.31 percent, down from last week when it averaged 6.4 percent; it is now at its lowest since the week of March 2, 2006, when it averaged 6.24 percent. The 15-year fixed-rate mortgage also sank during the period, falling from 6.06 percent to 5.98 percent, and is at its lowest level since the week ending March 23, 2006, when it averaged 5.97 percent. Points, which are fees charged by lenders for loan processing expressed as a percent of the loan, averaged 0.4 on the 30- and 15-year loans. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 6 percent this week, with an average 0.5 point, down from last week when it averaged 6.08 percent. The one-year Treasury-indexed ARM averaged 5.47 percent, with ...