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Mortgage rates stabilize
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August 31, 2000: 2:14 p.m. ET
A healthy economy and curtailed inflation help to calm the market
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NEW YORK (CNNfn) - Mortgage rates continued to float in a sea of calm this week, buoyed by a healthy economy and no signs of inflation, according to a report released by Freddie Mac.
A 30-year fixed-rate mortgage (FRM) averaged 7.96 percent for the week ending Sept. 1, almost unchanged from 7.99 a week earlier. The same mortgage was 7.83 percent a year earlier.
The average for a fixed-rate 15-year mortgage was 7.67 percent, down from last week's average of 7.72 percent. Last August, the rate was 7.45 percent.
A one-year adjustable-rate mortgage (ARM) averaged 7.27 percent, down from last week's average of 7.37 percent. The same mortgage averaged 6.18 percent a year ago.
 [Click here to see a breakdown of U.S. mortgage rates by region.]
"Housing figures were mixed this month, with existing home sales lower than expected and new home sales higher," said Robert Van Order, chief economist for Freddie Mac. "However, the Fed's lack of action at its last meeting indicated that inflation remains in check, building confidence that the economy is still healthy and strong. This offset the ambiguity contained in the housing figures and helped keep mortgage rates steady for the week."
Van Order said Friday's employment figures for August, as well as the results of two other important economic indicators will have an important impact on the economy going forward.
Freddie Mac (FRE: Research, Estimates), or Federal Home Mortgage Corp., is a publicly traded company that 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 entities, have become increasingly popular as an alternative to government-backed bonds, particularly with international investors. 
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