Mortgage Rates DeclineSlightly
McLEAN, Va. - (04/15/05) -- Long-term mortgage rates dipped abit this week, for the second week in a row, according to FreddieMac. The average for the 30-year, fixed-rate mortgage slipped to5.91% this week, from 5.93% last week; while the average for the15-year, fixed-rate loan fell to 5.46%, from 5.48%. ARM rates weremixed, with the average for the five-year ARM dipping to 5.31%,from 5.33% last week; and the average for the one-year ARM risingto 4.30%, from 4.23%. After topping 6% four weeks ago for the firsttime since July, the 30-year loan has eased in each of the last twoweeks. The drop comes as the traditional spring home-buying seasonheats up. "Given the current economy, mortgage rates can only riseso much in a short period of time," said Frank Nothaft, chiefeconomist for Freddie Mac. "While we still expect mortgage rates torise to perhaps as high as 6.5 percent by the end of the year, thatescalation in rates will be gradual and restrained."