Rates on 30-year mortgages fall after 2 consecutive increases

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) _ Rates on 30-year mortgages fell last week after two consecutive increases, providing a break for potential homebuyers.

Freddie Mac, the mortgage company, reported that 30-year, fixed-rate mortgages averaged 6.37 percent last week, down from 6.42 percent the week before. After hitting a high for this year of 6.73 percent in mid-July, rates have been trending lower.

Two weeks ago, the nationwide average for 30-year mortgages dipped to 6.31 percent, the lowest level since May 17. That decline reflected in part a flight to the safety of Treasury securities in August after a bout of turbulence in credit markets.

Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 6.03 percent last week, down from 6.09 percent the previous week.

Rates on five-year adjustable rate mortgages averaged 6.11 percent, down from 6.15 percent the week before. One-year ARMs averaged 5.58 percent, down from 5.60 percent.

The mortgage rates do not include add-on fees known as points. Thirty-year mortgages, 15-year and five-year mortgages all carried a nationwide average fee of 0.5 point while one-year adjustable-rate mortgages had an average fee of 0.6 point.

A year ago, 30-year mortgages stood at 6.30 percent, 15-year mortgages were at 5.98 percent, five-year ARMS averaged 6.00 percent and one-year ARMs were at 5.46 percent.

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Freddie Mac: http://www.freddiemac.com