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Mortgage rates stay steady
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August 20, 1998: 2:35 p.m. ET
Problems in Asian markets help keep U.S. housing sector active
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NEW YORK (CNNfn) - Mortgage rates have changed only slightly in the latest week, due to weak currencies in Asia, mortgage firm Freddie Mac said Thursday.
For the week ending Aug. 21, the rate on U.S. 30-year fixed mortgages inched up to an average 6.92 percent from 6.91 percent last week. Fifteen-year loans also climbed to 6.61 percent from 6.60 percent.
One-year adjustable rate mortgages, however, slipped a bit to an average 5.58 percent from 5.60 percent.
A year ago, the 30-year rate averaged 7.46 percent, the 15-year 6.99 percent and the one-year adjustable 5.56 percent.
"Housing continues to be strong, as seen in the high number of housing starts last month," Freddie Mac chief economist Robert Van Order said, adding that "a lot of this has to do with Asia's troubles."
The Commerce Department said Wednesday that U.S. July housing starts rose 5.7 percent to a 1.718 million unit annual rate, the highest since a rate of 1.726 million in March 1987.
"While the problems in the Asian markets will hurt some areas of our economy, it has helped to keep the housing sector alive," Van Order said. "And although housing will slow down in the near future, there is every reason to believe it will remain in good health."
Concern in financial markets over Asian currencies has led to more dollar investments, causing bond prices to rise and market interest rates to fall.
On Tuesday the Federal Open Market Committee left interest rates unchanged while the Labor Department reported a 0.2 percent rise in U.S. July consumer prices.
Freddie Mac said lenders charged an average 1.1 in fees and points on all loans, unchanged from last week.
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