It was reported that the average 30-year fixed-rate loans fell to 6.55 percent for the week ending Aug. 10 from 6.63 percent the week before. This has reached its lowest level since April 20. Last year, the 30-year mortgage rate averaged 5.89 percent.

Frank Nothaft, Freddie Mac vice president and chief economist, said in a press release that the weaker than expected jobs report combined with the Fed's decision to pass on raising rates at its last meeting led directly to lower rates this week.

He also added that lower rates may bring about a rise in refinancing activity as homeowners with ARMs getting ready to reset decide to take advantage by locking into a fixed-rate mortgage now rather than waiting until the adjustment date when rates may be higher.

Meanwhile Freddie Mac said the 15-year rate slipped to an average of 6.20 percent from 6.27 percent the previous week. On 2005, the 15-year rate averaged 5.47 percent. It was on May 18, 2006 that the 15-year rate was this low.

By M. Sese
http://realestatepress.org