DOW JONES NEWSWIRES
Mortgage rates fell again this week, remaining at three months
lows, with the average rate on 30-year, fixed-rate mortgages
retreating closer to 5%, according to Freddie Mac's (FRE) weekly
survey of mortgage rates.
After yields on Treasurys rebounded from the multi-decade lows
they hit earlier this year, they have since retraced a bit - taking
mortgage rates along with them.
Freddie chief economist Frank Nothaft said the results, which
showed the third consecutive week of declines in fixed mortgage
rates, suggest this year may post a record annual low for the
survey, which began in 1971.
Earlier Thursday, the Commerce Department said housing starts
were up 1.5% in August, less than expected. National Association of
Realtors data early this month showed that pending home sales
climbed to the highest level in more than two years.
The 30-year fixed-rate mortgage averaged 5.04% for the week
ended Thursday, down from last week's 5.07% average and 5.78% a
year ago. Rates on 15-year fixed-rate mortgages were 4.47%, down
from 4.5% and 5.35%, respectively.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.51%, flat with last week's 4.51% but down from 5.67% a
year earlier. One-year Treasury-indexed ARMs were 4.58%, down from
4.64% and 5.03%.
To obtain the rates, the 30-year fixed-rate mortgage required
payment of an average 0.7 point, while the 15-year fixed required
0.6 point. The adjustable-rate mortgages required an average 0.5
point. A point is 1% of the mortgage amount, charged as prepaid
interest.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com