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Mortgages inch downward
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April 6, 2000: 2:08 p.m. ET
Home ownership remains attractive investment as economy steams ahead
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NEW YORK (CNNfn) - Mortgage rates decreased slightly as April began, after several weeks of relative dormancy, according to a survey released by Freddie Mac Thursday.
The average rate on a 30-year fixed-rate mortgage was 8.20 percent for the week ending April 7, down from 8.23 percent a week earlier.
A year ago, the same mortgage stood at 6.87 percent.
The average for a 15-year fixed-rate mortgage stood at 7.83 percent, almost unchanged from 7.84 percent the previous week. Twelve months ago the same rate averaged 6.47 percent.
A one-year adjustable rate mortgage (ARM) averaged 6.79 percent, up from 6.76 a week earlier. The same mortgage averaged 5.56 percent a year ago.
"With the economy running at full tilt, incomes on the rise for the last nine years, and no signs of either inflation or recession, consumers continue to see housing as a real investment option for their money," said Robert Van Order, chief economist for Freddie Mac.
 "When you factor in growth in home value, the mortgage interest deduction that housing brings, and today's affordable mortgage rates, the idea of buying a home remains one of the more attractive plans for investing and for living," he added
[Click here to see a breakdown of U.S. mortgage rates by region.]
Freddie Mac (FRE: Research, Estimates), or the Federal Home Mortgage Corp., is a publicly traded company the government set up in 1970 to provide a flow of funds to mortgage lenders.
It buys mortgages from banks, bundles them, and then sells them as mortgage-backed securities. Its products and the products of other similar agencies have become increasingly popular as an alternative to government-backed bonds, particularly with international investors. 
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