Mortgage Rates Dip Slightly
Mortgage rates continued their long journey through the doldrums, drifting slightly lower during the week, according to mortgage financier Freddie Mac.
The average 30-year fixed-rate mortgage slid to 6.35 percent for the week ending September 4, down from 6.40 percent a week earlier and 6.46 percent a year ago.
The 15-year fixed displayed even less movement, falling three basis points to 5.90, and now sits a quarter-point below year ago levels when it averaged 6.15 percent.
Adjustable-rate mortgages also got in on the action, with the five-year ARM slipping to 5.97 percent, down from 6.03 percent last week and 6.32 percent a year ago.
The one-year was the biggest mover, averaging 5.15 percent for the week, down from 5.33 percent a week ago and 5.74 percent a year earlier.
Freddie Mac chief economist Frank Nothaft attributed the improvement in rates to a perceived slowing in consumer spending.
Overall, interest rates continue to be favorable, but with slipping equity and tighter lending guidelines, many won’t be able to take advantage of the situation, as evidenced by the lack of refinance applications.
Freddie Mac’s weekly interest rate survey uses data from conforming loans at a loan-to-value of 80 percent.
(photo: kwl)
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