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Mortgage rates back down
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October 22, 1998: 2:30 p.m. ET
Thirty-year rate can't sustain increase, slips to 6.73 percent
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NEW YORK (CNNfn) - Just as anticipated, mortgage rates inched back down this week, mortgage firm Freddie Mac said Thursday.
For the week ending Oct. 23, the average rate on U.S. 30-year fixed mortgages slipped to an average 6.73 percent from last week's 6.90 percent. Fifteen-year loans also fell, to an average 6.34 percent from 6.58 percent the week before.
One-year adjustable rate mortgages, however, were slightly higher at an average 5.37 percent, up from last week's 5.35 percent.
A year ago, interest rates on 30-year mortgages were 7.35 percent, 15-year rates were 6.90 percent, and adjustables came in at 5.55 percent.
"As we predicted, long-term interest rates eased somewhat this week," said Freddie Mac chief economist Robert Van Order. "The market, however, is slowing from record levels of activity to a more sustainable level."
He added, "With that in mind, Freddie Mac economists still see a strong, vibrant housing market going into the coming year."
Last week, the Federal Reserve cut interest rates for a second time in two weeks, lowering the overnight bank lending rate to five percent and the discount rate to 4.75 percent. As a result, some analysts expected 30-year mortgage rates to fall below the 6.49 percent they averaged in the October 9 week.
On Wednesday, the Commerce Department said U.S. September housing starts fell 2.5 percent to a 1.576 million unit annual rate.
Freddie Mac said lenders charged an average 0.9 percent in fees and points on both 30-year and 15-year mortgages, and 1.0 percent in fees and points on the one-year-adjustable rate.
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