Mortgage rates sink to three-month low
Freddie Mac reports 30-year falls for 3rd straight week, says refinancing may jump as a result.
NEW YORK (CNNMoney.com) -- Mortgage rates fell for the third straight week, with fixed-rate mortgages hitting their lowest level in about three months, helped in part by the Federal Reserve's pause in its rate-hike campaign, Freddie Mac reported Thursday.
The average rate on 30-year fixed-rate loans fell to 6.55 percent for the week ending Aug. 10 from 6.63 percent the week before, reaching its lowest level since April 20.
A year ago, the 30-year mortgage rate averaged 5.89 percent.
"The weaker than expected jobs report combined with the Fed's decision to pass on raising rates at its last meeting led directly to lower rates this week," Frank Nothaft, Freddie Mac vice president and chief economist, said in a prepared statement.
"Lower rates may bring about a rise in refinancing activity as homeowners with ARMs getting ready to reset decide to take advantage by locking into a fixed-rate mortgage now rather than waiting until the adjustment date when rates may be higher."
Freddie Mac said the 15-year rate slipped to an average of 6.20 percent from 6.27 percent the previous week. A year ago, the 15-year rate averaged 5.47 percent.
The last time the 15-year rate was this low was the week of May 18, 2006.
Five-year adjustable-rate mortgages fell to 6.21 percent from 6.27 percent last week.
The five-year ARM averaged 5.40 percent a year ago.
The average one-year adjustable-rate mortgage was unchanged however, at 5.69 percent. At this time last year, the loan averaged 4.57 percent.