Mortgage rates ease
Rates decline as economists anticipate
slower growth, Freddie Mac says
August 26, 1999: 1:32 p.m. ET
NEW YORK (CNNfn) - Mortgage rates declined for
the second week in a row amid
slower-than-anticipated economic growth, mortgage
firm Freddie Mac reported Thursday.
For the week ending Aug. 27, the average rate on
U.S. 30-year fixed-rate mortgages was 7.80 percent,
down from last week's 7.93 percent. One year ago,
the rate was 6.92 percent.
Fifteen-year loan rates fell to 7.43 percent from
7.53 percent the week before. The rate for these
mortgages averaged 6.61 percent for the same period
last year.
One-year adjustable-rate mortgages were 6.22
percent, up from last week's 6.18 percent. A year
ago, the rate was 5.58 percent.
(Click here to see a breakdown of average
mortgage rates by U.S. region.)
Freddie Mac deputy chief economist Frank
Nothaft attributed the decline to a decrease in overall
long-term rates.
"The market anticipated Tuesday's rate hike by
the Federal Reserve intended to slow growth. Slower
growth generally means lower inflation and lower
long-term interest rates," he said. "However,
short-term rates, directly effected by the Fed, crept
up a bit, pushing ARMs a little more higher." |
