WASHINGTON Mortgage rates declined this week, after a long-term rise, as signs of a weakening economic recovery emerged, according to Freddie Mac.
The average for the benchmark 30-year, fixed-rate loan fell to 4.50% from 4.57% last week; while the average for the 15-year, fixed-rate mortgage dipped to 3.54% from 3.59% last week.
ARM rates also slid, with the average for the five-year ARM dipping to 3.11% from 3.22%; and the average for the one-year ARM slipping to 2.65% from 2.67%.
“Mortgage rates drifted downward this week amid signs of a weakening economic recovery,” said Frank Nothaft, chief economist for Freddie Mac. “Retail sales rose 0.2% in August, which was nearly half of July’s 0.4% increase. In addition, industrial production in August grew 0.4%, less than the market consensus forecast. And lastly, consumer sentiment fell for the second consecutive month in September to the lowest reading since April.
“This, in part, was why the Federal Reserve chose to maintain its MBS and bond-buying program at its Sept. 12 and 13 monetary policy committee meeting.” said Nothaft.
