Rates Fall Again

The average 30-year fixed mortgage rate fell to 6.01% for the week ending Sept. 12 from 6.16% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.46% to 5.30%, and the average rate for one-year Treasury-indexed adjustable-rate mortgages declined from 3.87% to 3.81%. Fees and points averaged 0.5 points for fixed-rate mortgages and 0.6 points for ARMs. "Financial markets are feeling more confident that the Fed will not raise rates anytime soon," said Frank Nothaft, Freddie Mac's chief economist. "Add to that the fact that recent economic data shows core inflation is less than the market expects, and we see mortgage rates drop once again. And although refinancing has fallen off somewhat, homebuying activity remains vigorous, unfazed by market chatter that the end of the housing boom is near." A year ago, the average 30-year and 15-year fixed rates were 6.05% and 5.47%, respectively, and the average one-year ARM rate was 4.28%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.