Mortgage Rate Nearer to 5%

WASHINGTON -- Home-mortgage rates fell again this week, remaining at three-month lows, with the average rate on 30-year, fixed-rate mortgages retreating closer to 5%, according to Freddie Mac's weekly survey.

After yields on Treasurys rebounded from the multidecade lows they hit earlier this year, they have since retraced a bit -- taking mortgage rates with them.

Freddie economist Frank Nothaft said the results, which showed the third consecutive week of declines in fixed mortgage rates, suggest this year may post a record annual low for the survey, which began in 1971.

The 30-year fixed-rate mortgage averaged 5.04% for the week ended Thursday, down from last week's 5.07% average and 5.78% a year ago. Rates on 15-year fixed-rate mortgages were 4.47%, down from 4.5% and 5.35%, respectively.

Five-year Treasury-indexed hybrid adjustable-rate mortgages were 4.51%, flat with last week's 4.51% but down from 5.67% a year ago. One-year Treasury-indexed ARMs were 4.58%, down from 4.64% and 5.03%. For More Information MARKET MAINS