RESTON, Va. – Rates for 30-year mortgages back this week after soaring to seven-month highs last week, according to Freddie Mac.
The average for the 30-year, fixed-rate loan dipped to 5.38% this week, from 5.59% last week; while the average for the 15-year, fixed-rate mortgage fell to 4.89%, from 5.06%.
Short-term rates also declined, with the average for the five-year ARM slipping to 4.97%, from 5.17%; and the average for the one-year ARM falling to 4.95%, from 5.04%.
Rates had risen for three consecutive weeks after yields on long-term government debt, which are closely tied to mortgages rates, had been climbing as investors worried that the huge surplus of government debt hitting the market could trigger inflation.
The three-week run-up in rates, "is starting to slow homebuyer demand, at least temporarily," said Frank Nothaft, chief economist for Freddie Mac.
