Mortgage Rates Drop to 2-Year Lows

Mortgage rates declined this week, with rates on 30-year mortgages dropping to the lowest level in more than two years.

The average interest rate on 30-year fixed-rate mortgages fell to 6.86% from 6.89% last week, Freddie Mac said. This week’s rate surpassed the record low for the year of 6.96%, which had been set in March and marked the lowest level for 30-year mortgages since they averaged 6.82% the week of Feb. 19, 1999.

Fifteen-year mortgages dipped to 6.39% this week, compared with 6.47% the previous week and the lowest level since November 1999.

A year ago, rates for 30-year mortgages averaged 7.88% and rates for 15-year mortgages averaged 7.6%.

On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 5.62%, down from 5.64% the previous week. Last year at this time, ARMs stood at 7.26%.