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30-year mortgages decline to 6.59%,
a two-month low
Associated Press
WASHINGTON - Rates on 30-year mortgages sank to their
lowest point in two months in the week that ended yesterday,
a dose of good news for people thinking about buying
a home.
Freddie Mac, the mortgage company, reported that 30-year,
fixed-rate mortgages averaged 6.59 percent in its weekly
national survey. That was down from 6.68 percent for
the week ending Aug. 2 and was the lowest since early
June, when rates stood at 6.53 percent.
The moderation is a piece of welcome news for prospective
homebuyers, some of whom also have been faced with harder-to-get
credit. In mid-June, rates on 30-year mortgages had climbed
to 6.74 percent, an 11-month high.
Mortgages rates have ebbed as recent stock market turbulence
has prompted investors to plow money into bonds, driving
down rates on bonds. That, in turn, has pushed down rates
on mortgages, which have eased amid signs the economy
is growing gradually and hiring has cooled off a bit.
The unemployment rate inched up to 4.6 percent in July,
a six-month high.
Rates on 15-year fixed-rate mortgages, a popular choice
for refinancing, also moved lower this week. They dropped
to 6.25 percent, from 6.32 percent last week. Rates on
one-year adjustable-rate mortgages (ARMs) rose to 5.65
percent, up from 5.59 percent last week. Rates on five-year
adjustable-rate mortgages, rose this week to 6.33 percent,
from last week's average of 6.29 percent.
The mortgage rates do not include add-on fees known
as points. Thirty-year and 15-year mortgages each carried
a nationwide average fee of 0.4 point. Five-year and
one-year ARMs each carried an average fee of 0.5 point.
A year ago, rates on 30-year mortgages stood at 6.55
percent, 15-year mortgages were at 6.2 percent, five-year
adjustable-rate mortgages averaged 6.21 percent and one-year
ARMs were at 5.69 percent.
After a five-year boom, the housing market fell into
a slump last year. Sales turned weak as did home prices.
The slump is expected to last through the rest of this
year.
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