The average rate for a 30-year fixed-rate mortgage dropped to 3.91% in the week that ended Aug. 4, falling to the lowest level in two months, from the prior week's reading of 3.98%, according to a Thursday report from federally controlled mortgage buyer Freddie Mac. "Uncertainty about the economy helped drive down Treasury yields early in the week," said Sean Becketti, Freddie's chief economist. Changes in long-term-mortgage rates closely track movements on the yield for the 10-year Treasury note. A year ago, the 30-year rate was at 4.14%. A record low of 3.31% for the 30-year mortgage was reached in November 2012. The average rate for the 15-year fixed-rate mortgage fell to 3.13% in the latest week from 3.17% in the prior week. Meanwhile, the rate for a 5-year Treasury-indexed hybrid adjustable-rate mortgage was 2.95%, unchanged from the prior week. The rate for a 1-year Treasury-indexed ARM rose to 2.54% from 2.52%.
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