Mortgage interest rates edge down as worries over inflation ease

According to mortgage giant Freddie Mac, rates on 30-year fixed-rate mortgages dropped to 6.63%, down from last week’s reading of 6.67. Frank Nothaft, Freddie Mac’s chief economist, said the drop in interest is in part due to “a moderation in core inflation”. 15-year fixed rate mortgages averaged 6.30%, down from 6.34 last week, while five-year adjustable home loans stood at 6.29, compared to 6.30 a week earlier. One-year adjustable mortgages rose to 5.71%, up from 5.65 a week ago.

Mortgage applications showed a slight increase last week, according to the Mortgage Bankers Association. The mortgage application index was up 0.1%, as refinancing dropped 2.6% while purchase applications increased 2.0%. Not really a great summer home-buying season.