Mortgage rates inched back toward lows not seen for months this week, according to mortgage financier Freddie Mac.
The intensely popular 30-year fixed averaged 5.12 percent during the week ending August 20, down from 5.29 percent last week and 6.47 percent a year ago.
The 15-year fixed slipped to 4.56 percent from 4.68 percent, sitting well below the 6.00 percent seen last year.
“U.S. Treasury bond yields fell nearly a quarter of a percentage point over the week, and other long-term yields followed suit,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.
“Interest rates on 30-year and 15-year fixed-rate mortgages fell to the lowest level since the end of May, while initial rates on 5/1 hybrid ARMs declined to levels not seen since January 2005.
The five-year adjustable-rate mortgage (ARM) averaged 4.57 percent, down from 4.75 percent a week ago and 5.99 percent last year.
The one-year ARM dipped to 4.69 percent from 4.72 percent, and sits firmly below the 5.29 percent rate seen this time last year.
These average mortgage rates are good for conforming loan amounts; jumbo loans continue to price a point or so higher.
Yesterday, the MBA said mortgage applications increased 5.6 percent during the week ending August 14, thanks to a 6.9 percent increase in refinancing; purchases also saw a 3.9 percent gain.
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