Mortgage Rates Drop to New Lows for Year

Mortgage rates declined this week, with rates on 30-year and 15-year mortgages hitting their lowest levels this year. The average interest rate on 30-year fixed-rate mortgages fell to 6.8%, down from 6.86% last week, Freddie Mac said.

Fifteen-year mortgages, a popular option for refinancing, dipped to 6.3% this week, compared with 6.39% the previous week, and the lowest level since Oct. 2, 1998.

On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 5.58%, down from 5.62% the previous week.

These rates do not include add-on fees known as points, which averaged 1% of the loan amount for all three types of mortgages.