Mortgage Rates Fall to 7-Month Low

Average interest rates on 30-year fixed-rate mortgages fell this week to the lowest level in seven months. The average declined to 7.47%, down from 7.62% a week earlier, the Federal Home Loan Mortgage Corp. said. It was the lowest since the week ended Dec. 5, when the rate averaged 7.44%. The average’s peak so far this year was 8.18% during the week ended April 3, after the Federal Reserve Board tightened monetary policy. Mortgage rates have tracked the decline in bond rates, which have moved lower as traders became confident that there is little prospect for an immediate increase in inflation. Fifteen-year mortgages averaged 7.01% this week, down from 7.15% a week earlier, and the lowest since the week ended Dec. 5. On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 5.53% this week, down from 5.67% last week, and the lowest since the week ended Feb. 27. The rates do not include points.