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Mortgage rates mixed
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August 3, 2000: 2:38 p.m. ET
Home loan rates waver in narrow range as economy shows signs of cooling
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NEW YORK (CNNfn) - Mortgage rates fluctuated slightly this week amid growing proof that the economy continues to chill, according to a report released by Freddie Mac.
On Wednesday, a Commerce Department report showed new home sales plunged 3.7 percent in June to their lowest level in more than two years.
A 30-year fixed-rate mortgage (FRM) averaged 8.12 percent for the week ending Aug.3, edging down from 8.13 percent a week earlier. The same mortgage was 7.89 percent a year ago.
The average for a fixed-rate 15-year mortgage was 7.88 percent this week, up from 7.85 percent the previous week. A year ago the rate was 7.45 percent.
 A one-year adjustable rate mortgage (ARM) averaged 7.28 percent, inching down from 7.29 percent the previous week. The same mortgage averaged 6.09 percent a year ago.
[Click here to see a breakdown of U.S. mortgage rates by region.]
"Low new home sales figures released yesterday support the idea that the Fed's actions to keep inflation under control are finally having the desired effect," Freddie Mac deputy chief economist Frank Nothaft said.
"Despite these figures, the housing market remains brisk and we expect to see a strong housing sector through the rest of the summer season," he added.
Nothaft also said Freddie Mac expects mortgage rates to remain in the 8 percent to 8-1/4 percent range for the foreseeable future, helping keep housing an affordable investment
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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