Industry News

Mortgage rates down on weak home sales

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Long-term mortgage rates came down this week on news that home sales and prices fell to lows not seen in several years, according to surveys conducted by Freddie Mac and Bankrate.com. In Freddie Mac's survey, the 30-year fixed-rate mortgage dropped to an average 6.37 percent from 6.42 percent last week, while the average 15-year fixed rate sank to 6.03 percent from 6.09 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.5 on the 30- and 15-year loans. Adjustable-rate mortgages (ARMs) slipped for the second straight week in the surveys, with the five-year Treasury-indexed hybrid ARM down to an average 6.11 percent from 6.15 percent a week ago and the average one-year Treasury-indexed ARM falling to 5.58 percent from 5.6 percent. Points on the five-year and one-year loans averaged 0.5 and 0.6, respectively. "Mortgage rates eased slightly this week following three weeks of increases. The initial effects of the credit market tu...