Mortgage rates dropped to their lowest point in six weeks as bond investors were concerned about inflation and the U.S. economy, according to Freddie Mac.

The 30-year fixed-rate mortgage averaged 3.9% for the week ending Aug, 10, down from last week when it averaged 3.93%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.45%.

30-Year Fixed 15-Year Fixed 5/1-Year ARM
Average Rates 3.90% 3.18% 3.14%
Fees & Points 0.5 0.5 0.5
Margin N/A N/A 2.74

"After holding relatively flat last week, the 10-year Treasury yield fell 4 basis points this week. The 30-year mortgage rate moved in tandem with Treasury yields, dropping 3 basis points. Earlier this week, Federal Reserve officials highlighted the influence of continued weak inflation data on rates," said Sean Becketti, chief economist at Freddie Mac, in a press release.

The 15-year fixed-rate mortgage this week averaged 3.18%, the same as last week. A year ago at this time, the 15-year fixed-rate mortgage averaged 2.76%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.14%, down from last week when it averaged 3.15%. A year ago at this time, it averaged 2.74%.

"Mortgage rates were roughly flat last week for the second week in a row,” said Erin Lantz, Zillow's vice president of mortgages, when that company released its own rate tracker on Tuesday.

"This week markets are likely to focus on inflation data due Friday and several speeches by Fed officials throughout the week. However, August tends to be a relatively quiet month in financial markets and rates should remain within their recent range."

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Glenn McCullom

Glenn McCullom

Glenn McCullom is the copy editor of National Mortgage News.