Mortgage rates fell mildly on most types of loan programs this week, according to the latest survey from mortgage financier Freddie Mac.
The benchmark 30-year fixed-rate mortgage averaged 6.47 percent for the week ending August 21, down from 6.52 percent last week.
The 15-year fixed exhibited similar movement, falling seven basis points to average 6.00 percent even for the week.
Adjustable-rate mortgages were a mixed bag, with the five-year ARM dipping three basis points to 5.99 percent while the one-year ARM jumped 11 basis points to 5.29 percent.
A year ago, the 30-year averaged 6.52 percent, the 15-year 6.18 percent, the five-year 6.34 percent, and the one-year 5.60 percent.
But as we all know, low interest rates don’t mean a whole lot if you can’t obtain financing in the first place, and they don’t sound so hot when delinquent Indymac borrowers are set to receive rates below these markers.
“Even with the current historically affordable mortgage rates, news continues to show signs of weakening in the housing sector,” said Frank Nothaft, Freddie Mac chief economist.
“For example, housing starts fell to 0.965 million units (annualized) in July, the slowest pace since March 1991. As a result, homebuilder confidence remained at an all-time record low in August since the series began in January 1985.”
Freddie’s weekly survey uses data from conforming mortgage loans with a loan-to-value of 80 percent.
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