U.S. 30-year mortgage rates fall to 6.47%

August 21, 2008 by · Leave a Comment
Filed under: Industry News 

U.S. 30-year mortgage rates fell slightly in the latest week, according to a survey released on Thursday by home funding company Freddie Mac.  U.S. 30-year mortgage rates dipped to an average of 6.47 percent from 6.52 percent last week, while 15-year mortgages dropped to an average of 6.0 percent from 6.07 percent last week.

One-year adjustable rate mortgages, or ARMs, rose in the week to an average of 5.29 percent from 5.18 percent last week.

Freddie Mac said the “5/1” ARM, set at a fixed rate for five years and adjustable each following year, averaged 5.99 percent compared with 6.02 percent a week earlier.

A year ago, 30-year mortgage rates averaged 6.52 percent, 15-year mortgages 6.18 percent and the one-year ARM 5.60 percent. The 5/1 ARM averaged 6.34 percent.

“Even with the current historically affordable mortgage rates, news continues to show signs of weakening in the housing sector,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.

Nothaft cited a report from the Commerce Department this week that housing starts fell 11 percent in July to an annual pace of 965,000, the lowest since March 1991.

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Source: Reuters

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