Long-Term Mortgage Rates Fall Below Last Year’s Levels

McLEAN, Va. – The benchmark 30-year mortgage rate declined again this week, to below where it was a year ago, according to Freddie Mac. The average for the 30-year, fixed-rate loan slipped to 6.22% this week, from 6.30% last week’ while the average for the 15-year, fixed-rate mortgage fell to 5.97%, from 6.03%. ARM rates also ripped downward, with the average for the one-year ARM slipping to 5.49%, from 5.52% last week; and the average for the five-year ARM dropping to 5.96%, from 6.01%. Mortgage rates eased a little more this week, as market participants were concerned over how much drag the slowing housing market may have on economic growth, said Frank Nothaft, chief economist for Freddie Mac. For instance, last week's release of housing starts for January showed the weakest reading since August 1997, due to the abundance of homes already on the market to purchase.”