Mortgage Rates Fall To Four-MonthLows

McLEAN, Va. - (08/13/04) -- Long-term mortgage rates declinedthis week to their lowest in four months, as interest rates tumbledin the bond market before the Federal Reserve hiked short-termrates Tuesday, according to Freddie Mac. The average for thebenchmark 30-year, fixed-rate loan dropped to 5.85% this week, from5.99% last week; while the average for the 15-year, fixed-ratemortgage, declined to 5.24% from 5.40%. The average for theone-year ARM, more sensitive to changes in short-term rates, heldsteady at 4.08%.