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30-year mortgages decline to 6.69%,
despite loan woes
Associated Press
WASHINGTON - Rates on 30-year mortgages dipped slightly
this week as evidence grew of more troubles in the slumping
housing market.
Freddie Mac, the mortgage company, reported yesterday
that its survey showed 30-year fixed-rate mortgages averaging
6.69 percent for the week ending yesterday. That was
down from 6.73 percent for the week ending July 19. The
high point for this year was a rate of 6.74 percent hit
in mid-June.
Reports this week showed that the slump in housing,
which had enjoyed boom conditions for five years, was
continuing.
Sales of new and existing homes fell sharply in June
and one of the nation's biggest mortgage lenders
reported a sharp drop in profit for the second quarter
because
of rising loan defaults.
"Mortgage rates eased this week on market concerns
that a further weakening of housing demand this spring
will delay any recovery in this sector," said Frank
E. Nothaft, chief economist at Freddie Mac.
According to the Freddie Mac survey, rates on 15-year
fixed-rate mortgages, a popular choice for refinancing,
edged down slightly to 6.37 percent this week, compared
with 6.38 percent last week.
Rates on five-year adjustable-rate mortgages (ARMs)
averaged 6.3 percent, down from 6.35 percent last week.
Rates on one-year adjustable-rate mortgages edged down
to 5.69 percent, compared with 5.72 percent last week.
The mortgage rates do not include add-on fees known
as points. The 30-year, 15-year and five-year mortgages
all carried a nationwide average fee of 0.4 point. The
one-year adjustable-rate mortgage carried an average
fee of 0.5 point.
A year ago, rates on 30-year mortgages stood at 6.72
percent, 15-year mortgages were at 6.34 percent, five-year
adjustable-rate mortgages averaged 6.35 percent and one-year
ARMs were at 5.78 percent.
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