Mortgage Rates Fall, Fueling Record HomeSales

McLEAN, Va. - (05/27/05) -- Long-term mortgage rates continueddecline this week to their lowest level since January, according toFreddie Mac. The average for the 30-year, fixed-rate mortgage fellto 5.65% this week, from 5.71% last week; while the average for the15-year, fixed-rate loan slipped to 5.21%, from 5.27%. ARM rateswere mixed, with the five-year ARM averaging 5.07%, the same aslast week; and the one-year ARM dipping to 4.21%, from 4.26% lastweek. The continued low rates have helped fuel a boom in bothhomebuying and homebuilding that have pushed home prices up and setnew records for sales of new and existing homes.