Mortgage rates at lowest level in more than a year

Rates on 30-year mortgages sank this week to their lowest level in more than a year, offering a dose of welcome news to prospective home buyers who still face soaring home prices in many markets.

Freddie Mac, in its weekly survey, reported that rates on 30-year, fixed rate mortgages dropped to 5.53 percent, down from 5.57 percent last week. This week's rate was the lowest since early April 2004, when rates on 30-year mortgages averaged 5.52 percent, a spokeswoman for the mortgage giant said.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, also declined to 5.12 percent, compared with 5.16 percent.

While long-term mortgage rates fell this week, short term rates edged up.

Rates on one-year adjustable rate mortgages rose to 4.24 percent, up slightly from 4.23 percent in the prior week. For five-year hybrid adjustable rate mortgages, rates increased to 5.06 percent, up from 5.05 percent. — Associated Press