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Mortgage rates slide a bit
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August 13, 1998: 2:59 p.m. ET
Currency concerns and devaluation fears push rates to five-year lows
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NEW YORK (CNNfn) - Fears about other currencies are leading people to invest money in U.S. dollars, ultimately pushing mortgage rates even lower, mortgage firm Freddie Mac said Thursday.
For the week ending Aug. 14, the rate on U.S. 30-year fixed mortgages fell to an average 6.91 percent from 6.94 percent last week. Fifteen-year loans also slipped to 6.60 percent from 6.63 percent.
One-year adjustable rate mortgages were down too, dropping to an average 5.60 percent from 5.61 percent.
This is the lowest the 30-year rate has been since October 29, 1993, when the average was 6.86 percent.
A year ago, the 30-year rate averaged 7.54 percent, the 15-year 7.07 percent and the one-year adjustable 5.56 percent.
"Falling interest rates are largely the result of events in Asia," Freddie Mac chief economist Robert Van Order said. "Concern over other currencies and a fear of devaluation lead people to invest money into more stable currencies such as U.S. dollars. This causes bond prices to go up and interest rates to go down."
He added, "In the months to come, although it will slow down, the housing market will remain strong, as will the overall economy."
Freddie Mac said lenders charged an average 1.1 in fees and points on all loans, unchanged from last week.
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