Rates Decline Further

The average 30-year fixed mortgage rate fell from 6.43% to 6.40% over the seven-day period ended Sept. 21, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 6.11% to 6.06%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 6.10% to 6.08%, and the average rate for one-year Treasury-indexed ARMs decreased from 5.60% to 5.54%, Freddie Mac reported. Fees and points averaged 0.5 of a point for fixed-rate mortgages and hybrid ARMs, and 0.8 of a point for one-year ARMs. "A slowing housing market and signs that inflation is leveling off have helped to lower mortgage rates lately and keep them more affordable," said Frank Nothaft, Freddie Mac's chief economist. "For example, housing starts dropped to a three-year low in August, and the Producer Price Index fell below market expectations." A year ago, the average 30-year and 15-year fixed rates were 5.80% and 5.37%, respectively, and the average hybrid and one-year ARM rates were 5.31% and 4.48%, respectively, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.