Rates Decline

The average 30-year fixed mortgage rate fell from 5.80% to 5.77% over the seven-day period ended Aug. 25, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate decreased from 5.40% to 5.35%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages fell from 5.34% to 5.30%, and the average rate for one-year Treasury-indexed ARMs declined from 4.58% to 4.56%. Fees and points averaged 0.5 of a point for 30-year fixed-rate mortgages, 0.6 of a point for 15-year FRMs and hybrid ARMs, and 0.7 of a point for one-year ARMs. "New-home sales hit a record in July, while existing-home sales were at the third-highest level they have ever been," said Frank Nothaft, Freddie Mac's chief economist. "There is no doubt that low mortgage rates have been the driver of this phenomenal housing market." A year ago, the average 30-year and 15-year fixed rates were 5.82% and 5.21%, respectively, and the average one-year ARM rate was 4.05%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.