Mortgage Rates Still At 3-Month Low; 30-Year Fixed At 5.04%

   DOW JONES NEWSWIRES 
 

Mortgage rates fell again this week, remaining at three months lows, with the average rate on 30-year, fixed-rate mortgages retreating closer to 5%, according to Freddie Mac's (FRE) weekly survey of mortgage rates.

After yields on Treasurys rebounded from the multi-decade lows they hit earlier this year, they have since retraced a bit - taking mortgage rates along with them.

Freddie chief economist Frank Nothaft said the results, which showed the third consecutive week of declines in fixed mortgage rates, suggest this year may post a record annual low for the survey, which began in 1971.

Earlier Thursday, the Commerce Department said housing starts were up 1.5% in August, less than expected. National Association of Realtors data early this month showed that pending home sales climbed to the highest level in more than two years.

The 30-year fixed-rate mortgage averaged 5.04% for the week ended Thursday, down from last week's 5.07% average and 5.78% a year ago. Rates on 15-year fixed-rate mortgages were 4.47%, down from 4.5% and 5.35%, respectively.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.51%, flat with last week's 4.51% but down from 5.67% a year earlier. One-year Treasury-indexed ARMs were 4.58%, down from 4.64% and 5.03%.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.7 point, while the 15-year fixed required 0.6 point. The adjustable-rate mortgages required an average 0.5 point. A point is 1% of the mortgage amount, charged as prepaid interest.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [e-mail]