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The Honolulu Advertiser
Posted on: Friday, October 26, 2007

30-year mortgage rates at lowest level in six weeks

Associated Press

WASHINGTON — Rates on 30-year mortgages fell to the lowest level in six weeks as financial markets grew more hopeful that the Federal Reserve will boost the sluggish economy by cutting interest rates further.

Freddie Mac, the mortgage company, reported yesterday that 30-year, fixed-rate mortgages fell to 6.33 percent this week, down from 6.40 percent last week. It was the lowest level since 30-year mortgages dipped to 6.31 percent on Sept. 13.

Analysts attributed this week's decline to rising expectations that the Fed, which cut a key rate for the first time in four years in September, will trim it again at a meeting next week to try to prevent a severe slump in housing and a credit crunch from derailing the economy in coming months.

Other mortgage rates also fell this week.

  • Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 5.99, down from 6.08 percent last week.

  • Rates on five-year adjustable rate mortgages averaged 6.03 percent, down from 6.11 percent last week.

  • Rates on one-year ARMs dropped to 5.66 percent, down from 5.76 percent last week.

    The mortgage rates do not include add-on fees known as points.

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