McLEAN, Va. – Mortgage rates moved lower this week as economic data showed a slowing in consumer spending, according to Freddie Mac.
The average for the benchmark 30-year, fixed-rate loan dipped to 6.35% this week, from 6.40% last week; while the average for the 15-year, fixed-rate mortgage fell to 5.90%, from 5.93%.
ARM rates declined, with the average for the five-year ARM moving to 5.97%, from 6.03% last week; and the average for the one-year ARM dipping to 5.15%, from 5.33%.
“Mortgage rates eased a bit over the holiday-shortened week following release of economic data that suggest consumer spending may slow,” said Frank Nothaft, chief economist for Freddie Mac. He noted personal income fell in July for the first time since August 2005. The 0.7% drop “will likely slow consumer spending in the third quarter,” he said.
“The economy grew at an upwardly revised 3.3% pace in the second quarter, boosted by the smallest trade deficit in eight years, and residential fixed investment slowed growth by 0.6%, the least amount since the same period a year ago,” Nothaft said.
