Spring Returns to Mortgage Market

Consumers who thought they missed the market bottom in mortgage rates are now getting another chance. Rates fell again in the week ended Sept. 2 with the national average interest rate on a 30-year loan hitting its lowest level since April 1.

Mortgage powerhouse Freddie Mac(FRE Quote) in its weekly survey Thursday said the benchmark 30-year, fixed rate mortgage was at 5.77%, down from 5.82% last week. The 15-year mortgage averaged 5.15%, down from 5.21%. The one-year, Treasury-indexed adjustable-rate mortgage fell below 4% to 3.97%.

"Overall rates are dropping because there is a big question about the economy," says Beth Ann Bovino, economist for Standard & Poor's. "The nervousness over the past few days has to do with tomorrow's payroll number." ...