Long-Term Mortgage Rates Tumble

Average mortgage rates for 30-year and 15-year loans fell sharply this week, but the one-year adjustable rate hovered near a nine-year high. The average interest rate on 30-year fixed-rate mortgages slipped to 8.32% for the week ending today, down from 8.54% the previous week, Freddie Mac said. That was the largest weekly decline since late August. Three weeks ago, the 30-year rate hit a five-year high of 8.64%. Fifteen-year mortgages, a popular option for refinancing, dipped to 8.04% this week, down from 8.24% the previous week. Fifteen-year rates were at a five-year high of 8.31% in the last two weeks of May. On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 7.24% this week, close to last week’s 7.25% rate, which was a nine-year high. The rates do not include add-on fees known as points, which averaged about 1% of the loan amount for all three types of mortgages.