MortgagesRate: 5.25 percent (30-year fixed) Average Points: 0.31
Mortgage rates fell to their lowest reading in more than four months.
The average 30-year, fixed-rate mortgage fell 11 basis points, to 5.25 percent. A basis point is one-hundredth of a percentage point.
Meanwhile, this week's average 15-year, fixed-rate -- a popular option for refinancing -- dropped 10 basis points, to 4.64 percent.
The average jumbo, 30-year fixed dropped 16 basis points, to 6.47 percent.
Adjustable-rate mortgages split this week. The one-year, adjustable-rate mortgage jumped 9 basis points, to 5.21 percent. Meanwhile, the popular 5/1 ARM fell 11 basis points, to 4.69 percent.
Mortgage applications fell a seasonally adjusted 2.8 percent when compared to a week earlier, according to the Mortgage Bankers Association.
For the week ending Sept. 25, applications for new purchase dropped 6.2 percent. Refinancing activity slipped 0.8 percent.
In other mortgage news:
- Existing home sales fell in August after four straight months of gains, according to the National Association of Realtors. Sales fell 2.7 percent in August when compared to July. However, sales were up 3.4 percent year over year, and the amount of existing housing inventory nationwide slipped to an 8.5-month supply, down from 9.3 months in July.
- Sales of new homes rose 0.7 percent in August, the fifth straight month of gains, according to the U.S. Commerce Department. However, sales were down 3.4 percent year over year. At the current sales rate, there was a 7.3-month supply of new homes on the market in August.
- Home prices across the U.S. rose 1.6 percent in July when compared to a month earlier, the third straight month of price increases, according to the S&P/Case-Shiller Home Price Index. The index measures 20 of the nation's biggest housing markets. Just two cities -- Seattle and Las Vegas -- registered price declines in July. Despite the increase, prices fell 13.3 percent year over year and are now near the same levels as they were in autumn 2003.
To find and compare mortgage rates in your area, visit Bankrate's interactive search tool.
-- Chris Kissell