Mortgage rates decline on Fed move
30-year rates fall to 6.52 percent on easing of Treasury prices and the Federal Reserve's discount window rate cut, says Freddie Mac.
NEW YORK (CNNMoney.com) -- Mortgage rates declined about one-tenth of a percent across the board last week, continuing recent declines, Freddie Mac reported Thursday.
The government-sponsored loan buyer said the average rate on a 30-year fixed-rate loan fell to 6.52 percent for the week ending August 23, 2007 - from 6.62 percent last week.
Last year at this time, 30-year mortgage rates averaged 6.48 percent.
Freddie Mac said the fall mirrored recent movements in the rates of Treasury bonds, as well as the Federal Reserve's move to cut its discount rate.
"[The decline] is as a result of yields on Treasury securities coming down, and the Fed's decision to cut the discount rate by half a percent to 5.75 percent last Friday," said Frank Nothaft, Freddie Mac's (Charts, Fortune 500) chief economist, in a statement.
In its latest report, Freddie Mac said that rates on 15-year fixed-rate loans averaged 6.18 percent in the latest week, down from 6.30 percent last week. A year ago, the 15-year rate averaged 6.18 percent.
Five-year adjustable-rate mortgages (ARMs) averaged 6.34 percent this week, down from 6.35 percent last week.
A year ago, the 5-year ARM averaged 6.14 percent.