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Daily Real Estate News | October 15, 2004
30-Year Rates Take a Step Back
In its weekly survey, Freddie Mac reports that 30-year mortgage rates fell to 5.74 percent following a rise to 5.82 percent last week; while interest on 15-year products slipped from 5.24 percent to 5.14 percent and adjustable-rate mortgages sunk to 4.01 percent from 4.08 percent.
Rates on 30-year loans reached a high of 6.34 percent this year during the week of May 12, but they started to decline steadily during the spring and early summer months as economic activity waned. Since the latter part of August, however, rates have been in a "seesaw pattern," with markets reacting to a mix of economic indicators.
Freddie Mac chief economist Frank Nothaft remarks, "The decline in mortgage rates was due to a weak employment report for September, which suggested economic growth is still a bit subdued; as a result, we expect mortgage rates will continue to stay quite affordable over the next few months, benefiting future home buyers."
Source: Philadelphia Inquirer (10/15/04); Crutsinger, Martin
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