Rates on 30-year mortgages sank this week to their lowest point since late May, providing a ray of sunlight for would-be home buyers.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.52 percent, down from 6.62 percent last week and was the lowest rate since the week ending May 31, when rates stood at 6.42 percent. In mid-June, rates on 30-year mortgages climbed to 6.74 percent, the high for this year.
Other mortgage rates also went down this week:
- Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 6.18 percent, down from 6.30 percent last week.
- Rates on five-year adjustable-rate mortgages dipped to 6.34 percent, from 6.35 percent last week.
- Rates on one-year adjustable-rate mortgages fell to 5.60 percent, compared with 5.67 percent last week.
Mortgage rates eased following last week's decision by the Federal Reserve to slice its lending rate to banks, a move designed to calm recent turmoil on Wall Street about a spreading credit crunch.