30-Year Rate Hits 5-Year Low

The average 30-year fixed mortgage rate dropped from 6.92% to 6.82% (with fees and points averaging 1.0) for the week ending Sept. 4, the lowest rate in nearly five years, according to Freddie Mac's Primary Mortgage Market Survey.The last time the average 30-year rate was this low was during the week ended Oct. 22, 1993, when it averaged 6.74%, with fees and points averaging 1.5, Freddie Mac said. The average 15-year fixed mortgage rate fell to 6.51% from 6.61% (with fees and points averaging 1.0) the previous week, its lowest level since the 6.44% (with fees and points averaging 1.7) recorded the week ended Feb. 16, 1996. The average rate for one-year Treasury-indexed adjustable-rate mortgages decreased to 5.51% from 5.58%, with fees and points averaging 1.1. "Mortgage rates followed the market down this week, to exceptionally low levels," said Robert Van Order, Freddie Mac's chief economist. "This has served to prolong an already incredibly lengthy housing boom and, although we saw new home sales decline recently, the level of sales is still very high. There will be a gradual slowdown toward the end of the year, but the housing market will remain robust for some time to come." A year ago, the average 30-year and 15-year fixed rates were 7.53% and 7.08%, respectively, and the average one-year ARM rate was 5.58%. Freddie Mac's website address is http://www.freddiemac.com.