Mortgage Rate Down Again

The long-term mortgage rates fell for the sixth straight week. The 30-year rate is now very close to the lowest level of 2006, 6.10% seen in January. As a result, refinancing activity is stepping up throughout the nation. It may act as a factor leading to revitalization of the housing sector.

According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.11% in the week that ended today -- down from its 6.14% average last week. The rate was 6.32% one year back. The 15-year fixed rate averaged at 5.84% this week, again a slide from last week's 5.87%. At this time last year this rate was 5.87%.

Rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged at 5.92% decreasing from last week's 5.95%. This rate averaged 5.78% a year ago. The 1-year Treasury-indexed ARMs have an average rate of 5.43%, down from last week's rate of 5.46%. At this time in 2005, the 1-year ARM averaged 5.16%.