McLEAN, Va. – Long-term mortgages rates declined for the second week in a row, apparently ending a period of see-sawing rates.
The average for the 30-year, fixed-rate loan fell to 6.14% this week, from 6.20% last week; while the average for the 15-year, fixed-rate mortgage dipped to 5.81%, form 5.88%. Both rates are the lowest they’ve been in three weeks.
ARM rates were mixed, with the average for the five-year ARM declining to 5.98%, from 6.19% last week; but the average for the one-year ARMs inching upwards to 5.33%, from 5.25% last week.
"Long-term mortgage rates fell slightly this week as signs the overall economy is weakening brought interest rates down market-wide," said Frank Nothaft, chief economist for Freddie Mac. "In addition, the actions of the Fed in recent weeks to assist commercial paper markets appear to be thawing part of the credit freeze that has gripped capital markets in the U.S., giving banks some breathing room."
