Rates Keep Falling

The average 30-year fixed mortgage rate set another record for the week ending Oct. 9, falling to 6.49% from 6.60% the week before, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell to 6.15% from 6.27%, the lowest level since Freddie Mac began tracking it in September 1991. The average rate for one-year Treasury-indexed adjustable-rate mortgages dipped to 5.36% from 5.39%, its lowest level since the 5.40% recorded for the week ended March 1, 1996. Fees and points averaged 1.0 for all categories. "Treasury rates are abnormally low and they have pulled mortgage rates down with them, although by less than point for point," said Robert Van Order, Freddie Mac's chief economist. "Even though Treasury rates might rise, we don't think mortgage rates will increase much above their current levels, at least not in the near future." A year ago, the average 30-year and 15-year fixed rates were 7.26% and 6.82%, respectively, and the average one-year ARM rate was 5.49%. Freddie Mac's website address is http://www.freddiemac.com.