Industry News

Housing slowdown takes pressure off mortgage rates

Decline expected to impact consumer spending, economy

Mortgage rates dropped this week as markets bet the Fed would soon pause its interest-rate hikes amid modest economic growth and declining home sales, according to surveys conducted by Freddie Mac and Bankrate.com. In Freddie Mac's survey, the 30-year fixed-rate mortgage fell to an average 6.72 percent this week, down from last week's average of 6.8 percent. The average for the 15-year fixed-rate mortgage also dipped from last week, falling from 6.41 percent to 6.34 percent. Points, which are fees charged by lenders for loan processing expressed as a percent of the loan, averaged 0.3 on the 30-year and 0.4 on the 15-year loans. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 6.35 percent this week, with an average 0.4 point, down from last week when it averaged 6.36 percent. The one-year Treasury-indexed ARM averaged 5.78 percent this week, with an average 0.7 point, down from last week when it averaged 5.8 percent. "Mortgage rates drifted lower this we...