Mortgage Rates Fall Steeply

McLEAN, Va. – Rates on 30-year mortgages dropped this week to the lowest point in four months, providing some relief for people hoping to refinance their existing mortgages, according to Freddie Mac. The average on the benchmark, 30-year, fixed-rate loan fell to 6.31% this week, from 6.46% last week; while the average for the 15-year, fixed-rate mortgage declined to 5.97%, from 6.15%. ARM rates also fell steeply, with the average for the five-year ARM dropping to 6.17%, from 6.32% last week; and the average for the one-year ARM hitting 5.66%, down from 5.74%. All mortgage products surveyed by Freddie Mac showed declines this week. Frank Nothaft, the company's chief economist, said this should provide help to homeowners who are hoping to refinance existing adjustable rate loans that are resetting from low introductory "teaser" rates.