30-Year Rate Falls Further

The average 30-year fixed mortgage rate inched down to 6.64% for the week ending Sept. 18 from the record low 6.66% the week before, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell to 6.32% from 6.35%, and the average rate for one-year Treasury-indexed adjustable-rate mortgages dipped to 5.42% from 5.43%. Fees and points averaged 1.0 for 30-year mortgages, 0.9 for 15-year mortgages, and 1.1 for one-year ARMs, according to the survey. "Interest rates remain the lowest in Freddie Mac history; indeed, they are the lowest we have seen since 1967," said Frank Nothaft, Freddie Mac's deputy chief economist. "Because of the current low interest rate environment, Freddie Mac economists expect that existing home sales figures will continue at a brisk pace of 4.8 to 4.9 million units in August and September." Mr. Nothaft said very low inflation and an "essentially nonexistent" budget deficit are keeping mortgage rates at historical lows. If the Federal Reserve Board lowers interest rates at its next meeting, it would be likely to have more effect on one-year ARM rates than on longer-term rates, he said. A year ago, the average 30-year and 15-year fixed rates were 7.28% and 6.86%, respectively, and the average one-year ARM rate was 5.51%. Freddie Mac's website address is http://www.freddiemac.com.