Industry News

Mortgage rates drop again this week

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Long-term mortgage rates declined further this week as investors remained cautious about the housing market's recovery, Freddie Mac and Bankrate.com reported today. In Freddie Mac's survey, the 30-year fixed-rate mortgage dipped to an average 6.68 percent from last week's 6.69 percent, and the 15-year fixed-rate mortgage sank to 6.32 percent from 6.37 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.3 on the 30- and 15-year loans. Adjustable-rate mortgage (ARM) costs also dipped this week, with the five-year Treasury-indexed hybrid ARM slipping from 6.3 percent to 6.29 percent and the one-year ARM sliding from 5.69 percent to 5.59 percent. Points on these loans averaged 0.5. "Market investors seeking safety from the subprime fallout bought Treasury securities, pushing bond yields down and allowing mortgage rates to drift a bit lower," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement. "Sal...