30-Year Fixed Rate Declining

The 30-year fixed-rate mortgage averaged 5.83 for the week ending September 2. It was 5.88%. High energy costs are part of the reason for the decline in bond yields, which typically means lower mortgage rates. Also, speculation that the Federal Reserve may soon take a break in raising short-term rates reduced upward pressure on long- and short-term interest rates. The devastation caused by Hurricane Katrina may mean that mortgage rates will fall even further in the coming days ahead. Go to Chicago MLS Search to search for a home in and around Chicago.