Mortgage Rates Dip

McLEAN, Va. – Long-term mortgage rates declined again slightly this week, for the second week in a row, according to Freddie Mac. The average for the benchmark 30-year, fixed-rate loan slipped to 6.68%, from 6.69% last week; while the average for the 15-year, fixed-rate mortgage dipped to 6.32%, from 6.37%. ARM rates also moved lower, with the average for the one-year ARM dropping to 5.59%, from 5.69% last week; and the average for the five year ARM slipping to 6.29%, from 6.3%. “Market investors seeking safety from the subprime fallout bought Treasury securities, pushing bond yields down and allowing mortgage rates to drift a bit lower," said Frank Nothaft, chief economist for the secondary mortgage market giant. Sales of new and existing homes fell in June, and prices continue to weaken, especially in the markets that had recorded the strongest gains over the past few years.