Home Loan Rates Decline Substantially This Week

U.S. home mortgage rates dropped in the latest week, which could help home buyers who are looking to refinance, Freddie Mac reported Thursday.

The government-sponsored mortgage loan buyer said the average rate on a 30-year fixed-rate loan averaged 6.31 percent the week of September 13, a decline from 6.46 percent last week.

Last year at this time, 30-year mortgage rates averaged 6.43 percent.

Freddie Mac said interest rates on prime conforming mortgage products fell across the board in the past week, with rates on 30-year fixed mortgages averaging 0.15 percentage point below the previous week’s level.

“The drop in mortgage rates may give some relief to borrowers who are looking to refinance or purchase a home,” said Frank Nothaft, Freddie Mac’s vice president and chief economist.

“As a matter of fact, all the mortgages in Freddie Mac’s survey this week were lower than they were at the same time last year.”

In its latest report, Freddie Mac said rates on 15-year fixed-rate loans, popular with those seeking mortgage refinancing, averaged 5.97 percent in the latest week, down from 6.15 percent last week.

A year ago, the 15-year home loan rate averaged 6.11 percent.

Five-year adjustable-rate mortgages (ARMs) averaged 6.17 percent this week, down from 6.32 percent last week.

A year ago, the home loan rate for a 5-year ARM was 6.10 percent.

One-year ARMs averaged 5.66 percent this week, down from 5.67 percent last week, having also fallen from 5.60 percent this time last year.

SOURCE: CNN Money