Mortgage Rates Dip Slightly

McLEAN, Va. - (03/17/06) – Mortgage rates retreatedslightly this week from their highest levels in three years,according to Freddie Mac. The average for the 30-year, fixed-ratemortgage declined to 6.34% this week, from a three-year high of6.37% last week; while the average for the 15-year, fixed-rate loanslipped to 5.98%, from 6.0%. ARM rates also moved lower, with theaverage for the five-year ARM dropping to 5.93% this week, from6.03% last week; and the average for the one-year ARM falling to5.37%, from 5.45%. "Financial markets, hedging against thepotential build up in inflation, pushed mortgage rates higher lastweek," said Frank Nothaft, chief economist for Freddie Mac."However, market indicators this week seemed to point to less of athreat of inflation, and that allowed rates to drift a littlelower."