Fixed Mortgage Rates Lowest Since May ’99

The average interest rate on 30-year fixed-rate mortgages fell to 7.17%, down from 7.42% last week, Freddie Mac said. In mid-May, rates on 30-year mortgages hit a five-year high of 8.64%. Fifteen-year mortgages, a popular option for refinancing, declined to 6.84%, down from 7.11% last week. A year ago, 15-year mortgages averaged 7.57%. This week’s 30-year and 15-year mortgage rates were the lowest since the middle of May 1999, when they averaged 7.10% and 6.83%, respectively. On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 7.02%, down from 7.05% last week. Last year, one-year ARMs averaged 6.64%. The rates do not include add-on fees known as points.