Industry News

Real estate rates fall further

Freddie Mac predicts modest climb in '05

Mortgage rates dropped for the second consecutive week, according to Freddie Mac's weekly mortgage survey. Freddie Mac reported that the 30-year fixed-rate mortgage averaged 5.72 percent for the week ended today, down slightly from last week when it averaged 5.74 percent. The average for the 15-year fixed-rate mortgage this week is 5.15 percent, unchanged from last week.Points on both the 30- and 15-year averaged 0.6. One-year Treasury-indexed adjustable-rate mortgages averaged 4.27 percent this week, with an average 0.7 point, up from last week when they averaged 4.17 percent. "At this time last year, our forecast called for interest rates for 30-year fixed-rate mortgages to exceed 6 percent by this time this year," said Frank Nothaft, Freddie Mac vice president and chief economist. "Today's annual average mortgage rates are below even that projection thanks to the spring 'soft-patch' in economic growth. "Nevertheless, our outlook is that long-term rates are destined to rise to a sti...