The average rate on 30-year, fixed-rate mortgages dropped to 6.14 percent, down from 6.18 percent a week ago and 6.26 percent a year earlier. The 30-year fixed rate is the lowest it’s been since Jan. 26 of this year, according to Freddie Mac.

The 15-year, fixed-rate mortgage averaged 5.87 percent, down from 5.91 percent last week but up slightly from 5.81 percent a year ago. The rate is the lowest for 15-year fixed mortgages since Feb. 2, 2006.

The average five-year adjustable-rate mortgage rate was 5.95 percent, down from last week’s 5.99 percent but up from 5.76 percent a year earlier. The average one-year ARM rate was 5.46 percent, compared with 5.49 percent a week ago and 5.16 percent last year.

“Mortgage rates drifted lower this week, bringing long-term rates to levels below those of this time last year,” says Frank Nothaft, Freddie Mac vice president and chief economist. “Mortgage applications for home purchases in November have remained healthy, largely because of the drop in mortgage rates and a softening in home prices in some areas.”

— REALTOR® Magazine Online