Mortgage Rates Fall To Lowest Level Since May

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.