Mortgage-Rate Drop Is Good News for Home Buyers

Freddie Mac reports a modest decline in mortgage rates during the week ended Aug. 2, with the 30-year fixed rate falling to a one-month low of 6.68 percent from 6.69 percent. Interest on 15-year fixed loans, meanwhile, dropped to 6.32 percent from 6.37 percent. The five-year adjustable mortgage rate slipped to 6.29 percent from 6.30 percent, and the one-year ARM slid to 5.59 percent from 5.69 percent. Freddie Mac chief economist Frank Nothaft attributes the decrease in borrowing costs to an increase in investors snapping up Treasury securities as they move away from mortgage-backed bonds.

Courtesy: http://www.realtor.org