Weekly mortgage rates, monitored by Freddie Mac’s Primary Mortgage Market Survey (PMMS), decreased to 5.08 percent for the week ending September 3, 2009. This is a reverse from last week's increase and the lowest level seen since the end of May. The 30 year fixed rate mortgage average was down 6 basis points from last week’s 5.14 percent, and still well below last year when the rates were around 6.5 percent.

The 15-year fixed rate mortgage this past week averaged 4.54 percent with an average 0.6 point, down from last week's 4.58 percent. A year ago at this time, the 15-year fixed rate mortgage averaged 5.90 percent.

One-year Treasury-indexed adjustable-rate mortgages averaged 4.62 percent this week with an average 0.6 point, down from last week when it averaged 4.69 percent. At this time last year, the 1-year adjustable-rate mortgage averaged 5.15 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.59 percent this week, with an average 0.6 point, down from last week when it averaged 4.67 percent. A year ago, the 5-year adjustable-rate mortgage averaged 5.97 percent.

“Overall, inflation remains in check while certain sectors of the economy are experiencing some improvement. The core price index on consumer expenditures, a key indicator tracked by the Federal Reserve, rose 1.4 percent in July from the same time a year earlier and represented the smallest 12-month increase since October 2003. Meanwhile, the manufacturing industry expanded for the first time in 19 months, according to the Institute of Supply Management.

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