U.S. Mortgage Rates Drop Below Year-ago Levels

By Amy Hoak

RISMEDIA, Sept. 18, 2007-(MarketWatch)-Mortgage rates fell last week, bringing some rates down to levels lower than they were a year ago, Freddie Mac said on Thursday.

“Interest rates on prime conforming loans fell across the board in the past week, with rates on 30-year fixed mortgages averaging 0.15 percentage points below the previous week’s level,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release. “The drop in mortgage rates may give some relief to borrowers who are looking to refinance or purchase a home.”

The 30-year fixed-rate mortgage averaged 6.31% for the week ending Sept. 13, down from 6.46% last week, according to Freddie Mac’s weekly survey. The mortgage averaged 6.43% a year ago.

The 15-year fixed-rate mortgage averaged 5.97% for the week, down from last week’s 6.15% average. The mortgage averaged 6.11% a year ago.

Adjustable-rate mortgages also moved down this week, with five-year Treasury-indexed hybrid ARMs averaging 6.17%, down from 6.32% last week. The ARM averaged 6.10% a year ago.

And one-year Treasury-indexed ARMs averaged 5.66%, down from 5.74% last week. The ARM averaged 5.60% a year ago.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.5 point, and the 15-year fixed-rate required payment of an average 0.4 point. The five-year ARM required payment of an average 0.6 point, and the one-year ARM required payment of an average 0.8 point. A point is 1% of the total mortgage amount.

According to a separate survey released on Wednesday by the Mortgage Bankers Association, the volume of mortgage application filings was up 5.5% last week as mortgage rates decreased.

Amy Hoak is a MarketWatch reporter based in Chicago.

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