Mortgage Rates Fall To Six-Week Lows

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WASHINGTON – Long-term mortgage rates declined this week, with the average for the benchmark 30-year loan drifting to its lowest level in six weeks, according to Freddie Mac.

The average for the 30-year, fixed-rate mortgage fell to 5% this week, from 5.06% last week; while the average for the 15-year, fixed-rate loan declined to 4.36%, from 4.39%.

ARM rates also fell, with the average for the five-year ARM dipping to 3.99%, from last week’s 4% – hitting the lowest level since Freddie started tracking such loans at the beginning of 2005. One-year ARMs averaged 4.07%, down from 4.25%.

“Treasury bond and note yields declined this week, and rates on fixed-rate mortgages and hybrid ARMs followed suit,” said Frank Nothaft, chief economist for Freddie Mac. “Rates for both the 30-year and 15-year fixed-rate mortgages were the lowest in six weeks; initial rates on 5/1 hybrid ARMs hit an all-time low since they were added to the survey in the beginning of 2005.”

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