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Mortgage rates slide again
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June 8, 2000: 5:38 p.m. ET
Rates decline for second week in a row, in line with slower wage growth figures
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NEW YORK (CNNfn) - Long-term mortgage rates headed south for the second week in a row, aided by news that a slower wage growth could put the brakes on the robust economy, according to a survey released this week by Freddie Mac.
The average rate on a 30-year fixed-rate mortgage (FRM) was 8.32 percent for the week ending June 9, down from 8.54 percent a week earlier. This was the largest decline since the week ended Aug. 20, 1999, when the 30-year fell 22 basis points in one week. The same mortgage was 7.51 percent a year ago.
The average for a fixed-rate 15-year mortgage was 8.04 percent this week, down from 8.24 percent the previous week. A year ago the rate was 7.13 percent.
 A one-year adjustable rate mortgage (ARM) averaged 7.24 percent, a slight decrease from 7.25 percent the previous week. The same mortgage averaged 5.92 percent a year ago.
"Interest rates fell significantly this week, helped in part by the news that wage growth was well below what the market expected, a signal that the threat of inflation has faded," said Robert Van Order, chief economist for Freddie Mac. "And more good news arrived when some officials at the Fed suggested that the Fed is beginning to see the first signs of slowing in the economy, leading most analysts to feel that it won't raise again when it meets at the end of June," he added.
[Click here to see a breakdown of U.S. mortgage rates by region.]
Van Order said more indications about the state of the inflation will surface when the results of the Producer Price Index are released Friday, and the Consumer Price Index next week.
Freddie Mac (FRE: Research, Estimates), or 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 resells 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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