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Mortgage rates slide
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September 14, 2000: 1:03 p.m. ET
Slowdown in consumer spending and tame inflation help loan rate decline
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NEW YORK (CNNfn) - Mortgage rates slipped amid slower consumer spending and hopes of a cooling down of the economy, according to a report released this week by Freddie Mac.
A 30-year fixed-rate mortgage (FRM) averaged 7.88 percent for the week ending Sept. 15, down from 7.94. The same mortgage was 7.82 percent a year earlier.
The average for a fixed-rate 15-year mortgage was 7.60 percent, down from last week's average of 7.65 percent. The same mortgage was 7.43 percent a year earlier.
A one-year adjustable-rate mortgage (ARM) averaged 7.26 percent, down from last week's average of 7.33 percent. The same mortgage averaged 6.22 percent a year ago.
 [Click here to see a breakdown of U.S. mortgage rates by region.]
"Mortgage rates eased once again this week in anticipation of tame inflation figures," said Robert Van Order, chief economist for Freddie Mac. "Indeed, not only did the PPI figures released today indicate inflation continues to be under control, but it appears consumer spending may also be slowing, thereby reducing the threat of inflation as well. All these signs bode well for the housing industry and the economy in general."
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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