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Mortgage rates edge lower
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June 7, 2001: 1:50 p.m. ET
Long-term rates move lower in absence of inflationary pressure
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NEW YORK (CNNfn) - Mortgage rates dipped lower in the latest week on new key economic data pointing to continued economic weakness.
According to Freddie Mac, the benchmark 30-year fixed-rate mortgage (FRM) averaged 7.20 percent for the week ending June 8, down slightly from last week's average of 7.24 percent. A year ago, the same mortgage averaged 8.32 percent.
The average this week for a 15-year fixed-rate mortgage was 6.74 percent, down from the previous week's average of 6.78 percent. A year ago, the same rate stood at 8.04 percent.
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One-year adjustable-rate mortgages (ARMs) averaged 5.85 percent, down from last week's average of 5.89 percent. The same mortgage averaged 7.24 percent at this time last year.
"As the economy continues to slow, this reduces any inflationary pressure on interest rates. Thus, mortgage rates remained fairly constant this week," Freddie Mac chief economist Robert Van Order said.
Van Order also that anticipation of another Fed rate cut ahead of new economic data could lower mortgage rates in the near term "as long as there is no sign of inflation in next week's financial indicators."
[Click here to see a breakdown of U.S. mortgage rates by region]
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 entities, have become increasingly popular as an alternative to government-backed bonds, particularly with international investors. 
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