Mortgage Rates Tumble

Mortgage rates have taken a "welcome plunge" over the past week, as the market shifted expectations about the Federal Reserve's future rate-target moves, Freddie Mac(FRE Quote) said Thursday.

The government-backed mortgage lender's weekly survey showed the both long- and short-term rates declined for fixed products as well as adjustable-rate loans.

A 30-year fixed-rate mortgage came with an average rate of 6.26% with an upfront payment of six-tenths of a point for the week ended Thursday. Those loans averaged 6.37% a week ago and 6.73% a year ago.

Shorter term, 15-year fixed-rate mortgages averaged 5.78% with an upfront payment of six-tenths of a point, compared with 5.91% a week ago and 6.38% a year ago. ...