A weakening of consumer confidence drove long-term mortgage rates down to their lowest level in six months, according to Freddie Mac.
The average for the benchmark 30-year, fixed-rate loan slipped to 5.77% this week, down from 5.82% last week; while the average for the 15-year, fixed-rate mortgage declined to 5.15%, from 5.21%. ARM rates also fell, with the average for the one-year ARM dipping to 3.97%, from 4.05% last week.
Frank Nothaft, chief economist for Freddie Mac, said the continued decline in long-term rates was partly attributable to this week's fall in the consumer confidence index.
"The drop left an unsavory taste in the market. Because consumer spending contributes about two-thirds of the economy, this could seriously impact economic growth."
