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Mortgage rates head south
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June 15, 2000: 3:47 p.m. ET
Long- and short-term rates descend as the U.S. economy cools down: survey
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NEW YORK (CNNfn) - Long- and short-term mortgage rates slipped even further after last week's drop, as the U.S. economy continued to cool down, according to a survey released this week by Freddie Mac.
The average rate on a 30-year fixed-rate mortgage (FRM) was 8.22 percent for the week ending June 16, dipping from 8.32 percent a week earlier. The same mortgage was 7.65 percent a year ago.
 The average for a fixed-rate 15-year mortgage was 7.91 percent this week, down from 8.04 percent the previous week. A year ago the rate was 7.26 percent.
A one-year adjustable rate mortgage (ARM) averaged 7.21 percent, edging down from 7.24 percent the previous week. The same mortgage averaged 5.94 percent a year ago.
[Click here to see a breakdown of U.S. mortgage rates by region.]
"Many of the economic signals over the past week have indicated a slowdown in the economy, which has led the capital markets to take some of the inflation premium out of long-term rates like mortgages" said Robert Van Order, chief economist for Freddie Mac.
"It is still unclear if the signs we've seen lately will convince the Federal Reserve that there is no need to tighten credit further at its meeting later this month," he added.
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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