Rates Decline

The average 30-year fixed mortgage rate fell to 5.77% for the week ending Sept. 3 from 5.82% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.21% to 5.15%, while the average rate for one-year Treasury-indexed ARMs declined from 4.05% to 3.97%. Fees and points averaged 0.8 of a point for 30-year fixed-rate mortgages and ARMs and 0.7 of a point for 15-year FRMs. "The drop in consumer confidence left an unsavory taste in the market, creating a fear that consumer spending will slow," said Frank Nothaft, Freddie Mac's chief economist. "Because consumer spending constitutes about two-thirds of the economy, this could seriously impact economic growth. As a result, interest rates tend to retreat to lower levels." A year ago, the average 30-year and 15-year fixed rates were 6.32% and 5.66%, respectively, and the average one-year ARM rate was 3.88%, Freddie Mac said.