Rates Near Record Lows in Weekly Survey

Mortgage rates in Freddie Mac's weekly survey came in at or near record lows again this week.

With housing and economic data still weak, the average rate for a 30-year fixed-rate mortgage remained stable at 4.22%, Freddie said Thursday.

The average rate for the lesser used, five-year hybrid Treasury-indexed adjustable-rate mortgage set yet another record low as it fell for the eighth week in a row to 2.96%.

The average 15-year fixed rate dropped 5 basis points, to 3.99%, from last week, while the average one-year Treasury ARM rate declined 4 basis points, to 2.89%.

Thirty-year loans had an average of 0.7 of a point during the week ending Sept. 1 while the other three types of mortgages had an average of 0.6 of a point.

A year ago the 30-year was 10 basis points higher, the 15-year was 39 basis points higher, the five-year Treasury hybrid ARM was 58 basis points higher and the one-year Treasury ARM was 61 basis points higher.

Low rates are proving attractive to borrowers and underwriting has loosened somewhat, but the housing market's weakness is seen by some as a deterrent rather than the bargain it is, says Scott Stern, chief executive of the mortgage banking cooperative Lenders One.

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