WASHINGTON – Mortgage rates dropped sharply this week, after rising steeply for the past three weeks, according to Freddie Mac.
The average for the benchmark 3-year, fixed-rate loan slipped this week to 6.03%, from 6.24% last week; while the average for the 15-year, fixed-rate mortgage fell to 5.47%, from 5.72%.
ARM rates also moved lower, with the average for the five-year ARM dipping to 5.34%, from 5.43% last week; and the average for the one-year ARM declining to 4.94%, from 5.11%.
Economists attributed the decline in rates to the weakening economy."Weak economic reports that indicated declines in the job market, slowing in manufacturing and low consumer confidence drove bond yields lower this week and mortgage rates followed," said Frank Nothaft, chief economist for Freddie Mac.
