Fixed Rates Fall Again

The average 30-year fixed mortgage rate fell to 5.85% for the week ending Aug. 13 from 5.99% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.40% to 5.24%, while the average rate for one-year Treasury-indexed ARMs was unchanged, at 4.08%. Fees and points averaged 0.6 of a point for all three mortgage categories. "Last Friday's unexpectedly weak employment report caused interest rates on long-term Treasury bonds -- and by extension, mortgage rates -- to fall as investors worried about the health of the U.S. economy," said Amy Crews Cutts, Freddie Mac's deputy chief economist. "The Fed's rate hike on Tuesday was expected, and the Fed's cautiously optimistic outlook calmed the market. As a result, 30-year fixed mortgage rates should stay steady, near or just below 6%, for a while, giving prospective homebuyers another chance to get in with a low rate." A year ago, the average 30-year and 15-year fixed rates were 6.34% and 5.66%, respectively, and the average one-year ARM rate was 3.80%, Freddie Mac said.