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U.S. 30-, 15-year mortgage rates fall second straight week

Thu, Nov 13 2008, 16:00 GMT
http://www.afxnews.com

WASHINGTON, Nov 13 (Reuters) - U.S. 30- and 15-year

mortgage rates fell for a second straight week, according to a

survey released on Thursday by home funding company Freddie

Mac.

U.S. 30-year mortgage rates fell to an average of 6.14

percent from 6.20 percent in the latest week, while 15-year

mortgage rates dipped to an average of 5.81 percent from 5.88

percent last week.

One-year adjustable rate mortgages, or ARMs, inched upward

in the week to an average of 5.33 percent from 5.25 percent

last week.

Freddie Mac said the "5/1" ARM, set at a fixed rate for

five years and adjustable each following year, fell to an

average of 5.98 percent from 6.19 percent a week earlier.

A year ago, 30-year mortgage rates averaged 6.24 percent,

15-year mortgages 5.88 percent and the one-year ARM 5.50

percent. The 5/1 ARM averaged 5.96 percent.

"Long-term mortgage rates fell slightly this week as signs

the overall economy is weakening brought interest rates down

market-wide," said Frank Nothaft, Freddie Mac vice president

and chief economist, in a statement.

"In addition, the actions of the Fed (Federal Reserve) in

recent weeks to assist commercial paper markets appear to be

thawing part of the credit freeze that has gripped capital

markets in the U.S., giving banks some breathing room," he

said.

Last week the National Association of Realtors said its

September index of U.S. pending existing home sales fell 4.6

percent to 89.2.

Lenders charged an average of 0.7 percent in fees and

points on 30- and 15-year mortgages, and 0.6 percent on the 5/1

ARM, all unchanged from last week.

They charged 0.5 percent on the one-year arm, up from 0.4

percent a week earlier.

Freddie Mac is a mortgage finance company chartered by

Congress that buys mortgages from lenders and packages them

into securities to sell to investors or to hold in its own

portfolio.

(Reporting by Melissa Bland)

Keywords: USA MORTGAGES/RATES

(melissa.bland@thomsonreuters.com; +1 202 898 8318)

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