Mortgages Drop Below 6%

Rates are down substantially, and mortgage applications are up. Full article here.

Rates on 30-year fixed-rate home mortgages dropped substantially this week, falling under 6% for the first time since May in the wake of the government takeover of Fannie Mae and Freddie Mac, according to Freddie Mac’s weekly rate survey.

The national average for the 30-year fixed-rate mortgage was 5.93% for the week ended Sept. 11, down from 6.35% last week and 6.31% a year ago, according to Freddie Mac’s weekly survey. The rate is down nearly 0.6 percentage point over the past four weeks.

“This means that the monthly principal and interest payment on a new $200,000 loan is over $76 lower than a month ago,” said Frank Nothaft, Freddie Mac chief economist, in a news release. He expects the movement to help spur home purchases and loan refinancing in coming weeks.

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The MBA reported on Wednesday that mortgage applications filed last week rose 9.5% from the week before.

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