McLEAN, Va. – Long-term mortgage rates continued to gyrate this week, with rates declining again, after rising last week, according to Freddie Mac.
The average for the 30-year, fixed-rate mortgage fell to 6.20% this week, from 6.46% last week; while the average for the 15-year, fixed-rate loan slipped to 5.88%, from 6.19%.
ARM rates also moved lower, with the average for the five-year ARM dipping to 6.19%, from 6.36%; and the average for the one-year ARM falling to 5.25%, from 5.38%.
"Mortgage rates fell this week amid new indications of a pullback in consumer spending and a weaker jobs market," said Frank Nothaft, chief economist for Freddie Mac.
"With the economy contracting and experiencing record home foreclosures, lenders tightened their credit standards further, according to the October Federal Reserve Senior Loan Officer survey," Nothaft said. "Approximately 70% of banks raised their lending standards for prime mortgages and about 90% of banks that offer nontraditional mortgages did so as well."
