Industry News

Mortgage rates slide

Slew of weak economic news surfaces this week

Another week of disappointing economic reports caused mortgage rates to drop again, according to surveys conducted this week by Freddie Mac and From a sharp stock sell-off to slumping new-home sales to weaker gross domestic product growth, the news suggests a slower economy and lower inflation are in the works. As a result, the 30-year fixed-rate mortgage fell to an average 6.18 percent from 6.22 percent last week, according to Freddie Mac's survey, while the 15-year fixed-rate mortgage slid from 5.97 percent to 5.92 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.4 on the 30-year and 0.5 on the 15-year loans. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.93 percent this week, with an average 0.6 point, down from 5.96 percent last week, while one-year Treasury-indexed ARMs held at 5.49 percent, with points averaging 0.6. Real GDP, which measures the total value of goods and s...