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Mortgage rates have been dropping because they tend to track the yield on the 10-year Treasury note. A weaker U.S. economy and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasury securities, which are considered safe investments. As demand for Treasurys increase, the yield falls. To calculate average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week. The average does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. The average fee for 30-year loans was 0.7 point, unchanged from last week. The fee for 15-year loans slipped to 0.6 point, down from 0.7 the previous week. The average rate on one-year adjustable rate mortgages was unchanged at 2.69 percent. The fee for one-year adjustable rate loans also stayed the same, at 0.4 point. The average rate on five-year adjustable rate mortgages dropped to 2.69 percent from 2.74 percent last week. The fee was unchanged at 0.6 point.
[Associated
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