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Mortgage rates hold steady
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June 28, 2001: 1:15 p.m. ET
30-year rates unchanged from last week; short-term rates see slight movement
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NEW YORK (CNNfn) - Mortgage rates held steady following another interest rate cut – the sixth this year – by the Federal Reserve on Wednesday.
According to Freddie Mac, the benchmark 30-year fixed-rate mortgage (FRM) averaged 7.11 percent for the week ending June 28, unchanged from last week. A year ago, the same mortgage averaged 8.29 percent.
The average this week for the 15-year fixed-rate mortgage was 6.63 percent, down slightly from the previous week's average of 6.65 percent. A year ago, the same rate stood at 7.92 percent.
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One-year adjustable-rate mortgages (ARMs) averaged 5.77 percent, up from last week's average of 5.74 percent. The same mortgage averaged 7.26 percent at this time last year.
"The Fed's rate cut this week, although not expected to affect long-term interest rates, may allow shorter-term rates such as the 1-year ARM to ease back a bit," said Freddie Mac chief economist Robert Van Order said."
"This will give potential homeowners another more affordable option to purchase a home. As a matter of fact, if home sales continue at their current pace, 2001 will be another record year for home sales," Order said.
[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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