Mortgage Interest Rates Down

August 24, 2008

As we’ve moved into August, mortgage rates have dropped. The combination of lower rates and lower home prices are making homes affordable for increasing numbers of buyers. And it’s motivating more prospective buyers to take action before rates start to climb again.

At this point, the average rate for a 30-year fixed-rate mortgage is down to 6.46 percent, according to the Mortgage Bankers Association. The average points (fees, including origination fee) is 1.16 (percentage of loan). The average rate for a 15-year fixed-rate mortgage is down to 5.98, according to MBA.

"Mortgage rates moved lower as a drop in commodity prices eased market concerns over inflation pressures," said Frank Nothaft, Freddie Mac’s chief economist. "For instance, the Department of Energy reported that gasoline prices were the lowest since the end of May, and oil prices were at levels not seen since early May."

Posted in All Things San Diego