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Mortgage rates decline
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July 27, 2000: 2:53 p.m. ET
Home loan interest rates decelerate as signs point to a cooling economy
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NEW YORK (CNNfn) - Mortgage rates slid this week, amid growing proof that the economy is cooling down, according to a report released by Freddie Mac.
The average rate on a 30-year fixed-rate mortgage (FRM) was 8.13 percent for the week ending July 28, slipping from 8.21 percent a week earlier. The same mortgage was 7.70 percent a year ago.
The average for a fixed-rate 15-year mortgage was 7.85 percent this week, down from 7.93 percent the previous week. A year ago the rate was 7.29 percent.
 A one-year adjustable rate mortgage (ARM) averaged 7.29 percent, down from 7.32 percent the previous week. The same mortgage averaged 5.99 percent a year ago.
[Click here to see a breakdown of U.S. mortgage rates by region.]
"Growing evidence that the economic growth rate is throttling back to sustainable levels is the main reason why mortgage rates softened this past week," said Freddie Mac deputy chief economist Frank Nothaft.
"Specifically the market was comforted by the June drop in housing starts as well as statements by Federal Reserve Board Alan Greenspan that economic growth, and inflationary pressures are trending down," he added.
Freddie Mac (FRE: Research, Estimates), or Federal Home Mortgage Corp., is a publicly traded company the government established 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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