Average mortgage rates continue downward trend

Mortgage rates decreased for the third straight week and reached their lowest level since mid-April, according to Freddie Mac.

The 30-year fixed-rate mortgage averaged 4.51% for the week ending Aug. 23, down from last week when it averaged 4.53%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.86%.

"Backed by very strong consumer spending, the economy is red-hot this month, which is in turn rippling through the financial markets and driving equities higher," Sam Khater, Freddie Mac's chief economist, said in a press release.

"Unfortunately, the same cannot be said about the housing market, where it appears sales activity crested in late 2017. Existing-home sales have now stepped back annually for the fifth straight month, and purchase mortgage applications this week were barely above year ago levels."

The 15-year fixed-rate mortgage this week averaged 3.98%, down from last week when it averaged 4.01%. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.16%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.82% with an average 0.3 point, down from last week when it with an average 3.87%. A year ago at this time, the five-year adjustable-rate mortgage averaged 3.17%.

"Mortgage rates have hit the late summer doldrums, holding steady over the past week and remaining almost exactly where they stood a month ago. Financial markets are typically quiet in the final weeks of August, and there was very little major economic news to jolt their trajectory," Aaron Terrazas, Zillow's senior economist, said when that company released its own rate tracker on Aug. 22.

"The Federal Reserve Bank of Kansas City's annual Jackson Hole meeting could offer insights into monetary policymakers' perspective on the long-term outlook for the American and global economies."