Industry News

Housing woes send mortgage rates lower

Markets await Fed's next move

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Long-term mortgage rates continued to fall this week as problems in the subprime market forced investors to seek more stable securities, driving up bond prices and lowering yields, Freddie Mac and Bankrate.com reported today. In Freddie Mac's survey, the 30-year fixed-rate mortgage dipped to an average 6.67 percent from 6.69 percent last week, and the 15-year fixed-rate loan fell to 6.34 percent from 6.37 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.4 on the 30- and 15-year loans. Costs on adjustable-rate mortgages (ARMs) were down again this week, with the five-year Treasury-indexed hybrid ARM slipping to 6.3 percent from 6.31 percent a week ago and the one-year ARM inching lower to 5.65 percent from 5.66 percent. "Mortgage rates edged down slightly for the second week in a row after having risen over the previous month and a half, and as financial markets prepared for the June 28th Federal Open Market Committee...