Industry News

Mortgage rates fall to 6-month lows

Weak economy, low inflation keep 30-year average at 5.7%

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Mortgage rates dropped for the second consecutive week to lows not seen since late March, according to surveys conducted by mortgage buyer Freddie Mac and Bankrate. In Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 5.7 percent for the week ended today, down from last week when it averaged 5.75 percent. The average for the 15-year fixed-rate mortgage this week is 5.1 percent, also down from last week when it averaged 5.13 percent. Points on both the 30- and 15-year averaged 0.7. One-year Treasury-indexed adjustable-rate mortgages averaged 4 percent this week, with an average 0.7 point, down from last week when it averaged 4.03 percent. "This new millennium has proven to be very homeowner-friendly. For instance, in the last four years we have set records in housing starts, housing sales, low mortgage rates, refinancing volumes and total mortgage originations," said Frank Nothaft, Freddie Mac vice president and chief economist. "As a matter of fact, low mortgage ra...