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Mortgages tumbling down
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September 10, 1998: 1:57 p.m. ET
The 30-year fixed rate stays below 7 percent for a record 13 weeks in a row
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NEW YORK (CNNfn) - Mortgage interest rates gave even more incentive for people to buy or refinance their homes this week, as they fell even further past last week's low levels, mortgage firm Freddie Mac said Thursday.
For the week ending Sept. 11, the rate on U.S. 30-year fixed mortgages dipped to an average 6.77 percent from last week's 6.82 percent. Fifteen-year loans also were down at an average 6.43 percent from 6.51 percent the week before.
One-year adjustable rate mortgages, too, came in lower at an average 5.50 percent from last week's 5.51 percent.
Averaging below 7 percent for a record-breaking 13 weeks in succession, the 30-year rate has not been this low since the week ending Oct. 22, 1993, when it averaged 6.74 percent, and the 15-year rate has not been lower since the week ending Oct. 29, 1993, when it averaged 6.40 percent.
A year ago, the 30-year rate averaged 7.53 percent, the 15-year 7.07 percent and the one-year adjustable 5.59 percent.
"Not only have mortgage rates fallen to historical lows, they have remained at such levels for a record-breaking 13 weeks," Freddie Mac chief economist Robert Van Order said. "The real news, however, is that they may very well average out even lower next week."
"Because of the continued low rates, the Mortgage Bankers Association reports 50 percent of applications for mortgages are refinancings, prolonging the refi boom far longer than was ever expected," Van Order added.
On Friday the Labor Department will issue U.S. July producer prices.
Freddie Mac said lenders charged an average 1.0 percent in fees and points on 30- and 15-year mortgages, unchanged from the previous week. They charged 1.1 percent on the adjustable-rate mortgage, also unchanged from the prior week.
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