Mortgage Rates Keep Falling

McLEAN, Va. - (06/03/05) -- Long-term mortgage rates declinedagain this week, for the third week in a row, according to FreddieMac. The average for the benchmark 30-year, fixed-rate loan dippedto 5.62% this week, from 5.65% last week; while the average for the15-year, fixed-rate mortgage slipped slightly to 5.20%, from 5.21%.ARM rates rose slightly, with the average for the five-year ARMrising to 5.1%, from 5.07%; and the average for the one-year ARMgoing to 4.26%, from 4.21%. However, Freddie's chief economistFrank Nothaft warned that improvements in the job market and risingwages will probably put upward pressure on mortgage rates in thecoming months.