Fixed-rate mortgages declined further in August.

However, interest rates on the most popular form of adjustable-rate mortgages edged up slightly, the Federal Home Loan Bank Board said. Conventional fixed-rate mortgages averaged 10.85% in early August, down from 10.96% the month before, the FHLBB reported. A year ago, fixed-rate mortgages averaged 12.62%. Rates for the most common type of adjustable-rate mortgage, one that has a cap on how much rates can increase, rose slightly in early August to 9.43% from 9.41% in July. In August, only 27% of mortgages had adjustable rates, down from 52% a year ago.