ECON- Rates On 30 Year 15 Year Mortages Fall

greenspun.com : LUSENET : Current News : One Thread

Rates on 30-Year 15-Year Mortgages Fall; One-Year ARMS Rise

The Associated Press Published: Jul 26, 2001

WASHINGTON (AP) - Rates on 30-year and 15-year mortgages around the country this week edged down for the second week in a row, while rates on one-year adjustable mortgages rose sharply. The average interest rate on 30-year fixed-rate mortgages dipped to 7.03 percent for the week ending July 27, down from 7.08 percent last week, according to a nationwide survey released Thursday by Freddie Mac, the mortgage company.

Fifteen-year mortgages, a popular option for refinancing, fell to 6.58 percent this week, compared with 6.65 percent the previous week.

At the same time last year, rates for 30-year mortgages averaged 8.13 percent and rates for 15-year mortgages averaged 7.29 percent.

On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 5.72 percent, up from 5.62 percent the week before. Last year, one-year ARMs stood at 7.29 percent.

These rates do not include add-on fees known as points, which averaged around 1 percent of the loan amount for all three types of mortgages.

"Mortgage rates have remained below 7.25 percent since the end of last year," said Freddie Mac chief economist Robert Van Order. "And, it is these affordable rates that are contributing to the continuing vibrancy of the housing sector."

AP-ES-07-26-01 1317EDT

-- Anonymous, July 26, 2001


Moderation questions? read the FAQ