Mortgage Rates Fall To Lowest Level Since May

By Steve GoldsteinMarketWatch Pulse

Market turmoil has pushed the benchmark mortgage rate to the lowest level since May, mortgage buyer Freddie Mac said Thursday. The 30-year fixed-rate mortgage averaged 3.84% for the week ending Aug. 27, down from 3.93%. The 15-year fixed-rate mortgage averaged 3.06%, down from 3.15%; the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.9%, down from 2.94%; and the 1-year Treasury indexed ARM stayed at 2.62%. "There are indications though that the unsettled state of global markets will make the Fed think twice before taking any action on short-term interest rates in September. If that's the case, the 30-year mortgage rate may remain subdued in the short-to-medium term, providing support for continued strength in the housing sector," said Sean Becketti, chief economist of Freddie Mac, in a statement.

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