Rate Descent Continues

The average 30-year fixed mortgage rate fell from 6.40% to 6.31% over the seven-day period ended Sept. 28, its lowest level since the 6.24% recorded the week of March 2, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 6.06% to 5.98%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 6.08% to 6.00%, and the average rate for one-year Treasury-indexed ARMs decreased from 5.54% to 5.47%, Freddie Mac reported. Fees and points averaged 0.4 of a point for fixed-rate mortgages, 0.5 of a point for hybrid ARMs, and 0.6 of a point for one-year ARMs. "This week's economic releases, which showed a slight one-year decline in both new- and existing-house prices in August, fell short of market expectations and prompted market analysts to reassess how much the housing sector will contribute to economic growth in the coming year," said Frank Nothaft, Freddie Mac's chief economist. "As a result, mortgage rates declined even further this week to match those set six months ago." A year ago, the average 30-year and 15-year fixed rates were 5.91% and 5.48%, respectively, and the average hybrid and one-year ARM rates were 5.44% and 4.68%, respectively, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.