Mortgage Rates Decline

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McLEAN, Va. - (01/07/05) -- Long-term mortgage rates fellslightly this week, after rising the previous two weeks, accordingto Freddie Mac. The average for the benchmark 30-year, fixed-rateloan declined to 5.77% this week, from 5.81% last week; while theaverage for the 15-year, fixed-rate mortgage dipped to 5.21%, from5.23%.The average for the one-year ARM also dropped to 4.10%, from4.19% last week. "Economic news seems to reflect steady growth andlow inflation, placing little upward pressure on interest rates,"said Amy Crews Cutts, deputy chief economist for Freddie Mac."Although we expect mortgage rates will start to trend gentlyupward over the year, 30-year fixed mortgage rates should stayunder 6%, at least through the first quarter."

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