Mortgage Rates Ease Slightly
McLEAN, Va. - (06/09/06) Long-term mortgage halted theirshort-term march higher this weekif only brieflyasworries over job growth slowed the mortgage market. The average forthe 30-year, fixed-rate loan dipped slightly this week to 6.62%,from 6.67%, and the average for the 15-year, fixed mortgagedeclined to 6.23%, from 6.26%, according to Freddie Mac. ARM ratesalso eased, with the average for the one-year ARM slipping to5.63%, form 5.68%; and the average for the five-year ARM dipping to6.20%, from 6.26%. Rates have risen over the past two months totheir highest levels in four years. Mortgage rates are down alittle this week on news of disappointing job growth in May coupledwith downward revisions for the previous two months, said FrankNothaft, chief economist for the secondary mortgage market giant.The slight drop in long-term rates reflects a cautiously optimisticoutlook in the market that core inflation remains contained. Thesoon-to-be released Producer Price Index, followed by the ConsumerPrice Index, will give a better indication which way inflation isheaded.