Mortgage Rates Move Downwards

McLEAN, Va. – Mortgage rates continued to see-saw this week, with long-term rates declining, after rising last week, according to Freddie Mac. The average for the benchmark 30-year, fixed-rate loan dipped to 6.17% this week, from 6.22% last week; while the average for the 15-year, fixed-rate mortgage slipped slightly to 5.89%, from 5.90%. ARM rates also moved slightly lower, with the average for the one -year ARM declining to 5.45% from 5.47%; and the average for the five year ARM moving to 5.92%, from 5.93%. Mortgage rates slipped following the latest reports of moderation in inflation rates from the core producer price and consumer price indexes, said Frank Nothaft, chief economist for Freddie Mac. Excluding food and energy, the core inflation rate for consumer prices rose 2.5% year-over-year, the smallest annual growth since May 2006. This helped calm markets and brought mortgage rates down.