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Fixed mortgage rates dip
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October 19, 2000: 2:33 p.m. ET
Long-term home loans remain below 8 percent for tenth straight week
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NEW YORK (CNNfn) - Long-term mortgage rates stayed below 8 percent for the 10th consecutive week as the housing market remained stable, a newly released survey by Freddie Mac shows.
The benchmark 30-year fixed-rate mortgage (FRM) averaged 7.83 percent for the week ending Oct. 20, down just barely from last week's average of 7.84 percent. A year ago, the same mortgage averaged 7.93 percent.
The average this week for a 15-year fixed-rate mortgage was 7.5 percent, down marginally from last week's average of 7.52 percent. A year ago, the same rate stood at 7.53 percent.
 One-year adjustable-rate mortgages (ARMs) this week averaged 7.25 percent, edging up from last week's average of 7.23 percent. The same mortgage averaged 6.3 percent this time last year.
[Click here to see a breakdown of U.S. mortgage rates by region.]
"Housing still remains a very affordable and profitable investment, especially given the recent volatility in the stock market," said Robert Van Order, chief economist for Freddie Mac. "With mortgage rates relatively stable and low, and the potential for building homeowner equity stronger than ever, this is an excellent time for would-be homeowners to invest in homeownership."
He adds: "And since the Federal Reserve Board seems content with the current state of the economy, mortgage rates are likely to remain stable for the rest of the year."
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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Freddie Mac
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