Mortgage
Rates Drop
By Jim
Woodard
Happily surprising many consumers, mortgage interest rates slowly
but steadily dropped through August. By September 1, the average
rate for a 30-year fixed-rate mortgage had lowered
to 6.44 percent, with an average 0.4
point (fees), according to Freddie Mac, a major buyer of existing
home mortgages. That's the lowest rate for 30-year fixed mortgages
since the week ending April 6 of this year and is good news for
prospective home buyers and homeowners who want to refinance their
mortgage.
"Mortgage rates continue to drift lower in large part because of
cooling in the housing market and in consumer confidence. It's
giving financial markets reason to believe that economic growth will
moderate and inflation will remain in check," said Frank Nothaft,
Freddie Mac's chief economist. "As a matter of fact, the 30-year
fixed mortgage is nearly 40 basis points lower than its peak of 6.8
percent in July of this year. By some indicators, personal incomes
are growing faster than the cost of housing. Combined with the still
historically low mortgage rates, this will help support the housing
industry as it levels off from the record highs of the last few
years." |
Ilona Downey
Mortgage Loan Officer
 |
