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The Honolulu Advertiser
Posted on: Friday, January 11, 2008

Mortgage rates dip below 6%

Associated Press

WASHINGTON — Rising worries about a weak economy pushed rates on 30-year mortgages below the 6 percent mark for only the second time in more than two years.

Mortgage company Freddie Mac reported yesterday that 30-year, fixed-rate mortgages averaged 5.87 percent this week. That is down from 6.07 percent last week. Only once in the past two years have 30-year mortgages fallen below 6 percent, dipping to 5.96 percent on Dec. 6.

Analysts attribute this week's decline to last week's employment report, which showed the joblessness rate jumping to 5 percent in December, up from 4.7 percent in November.

The weak employment picture has heightened fears that the steep slump in housing and a credit crisis could be pushing the country into a recession.

Other types of mortgages also showed declines. Rates on 15-year mortgages dropped to 5.43 percent, from 5.68 percent last week. Five-year adjustable-rate mortgages declined to 5.63 percent, from 5.78 percent. One-year ARMs fell to 5.37 percent, down from 5.47 percent last week.

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