Mortgage rates drop to record lows (by Ruth Mantell)

WASHINGTON (MarketWatch) -- With persistent market concerns, mortgage rates hit record lows in the week ending Aug. 18, Freddie Mac reported Thursday. The average rate on the 30-year fixed-rate mortgage declined to 4.15% -- the lowest since Freddie Mac's data collection started in 1971 -- from 4.32% in the prior week, according to the buyer of residential mortgages. A year ago, the rate was at 4.42%. "The Federal Reserve's policy statement last week and ongoing market concerns over the European debt market carried momentum into this week allowing all mortgage products in our survey to reach all-time record lows," said Frank Nothaft, Freddie Mac's chief economist, in a statement. Meanwhile, the average rate on the 15-year fixed-rate mortgage hit a record low of 3.36% in the latest week, down from 3.50% in the prior week. These data go back to 1991. The 5-year Treasury-indexed hybrid adjustable-rate mortgage hit a record low of 3.08% in the latest week, down from 3.13% in the prior week. These data go back to 2005. And the 1-year Treasury-indexed ARM hit a record low of 2.86% in the latest week, down from 2.89%. These data go back to 1984.