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Mortgage rates dip again
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August 2, 2001: 1:02 p.m. ET
Long-term 30-year mortgage hits its lowest level in four months
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NEW YORK (CNNfn) - Mortgage rates continued to decline in the latest week, with the 30-year fixed-rate mortgage reaching its lowest level in four months.
According to Freddie Mac, the benchmark 30-year fixed-rate mortgage (FRM) averaged 7.00 percent for the week ending Aug. 3, down slightly from 7.03 percent the previous week; it averaged 6.91 percent in the week ending March 20, four months ago. A year ago, the same mortgage averaged 8.12 percent.
The average this week for the 15-year fixed-rate mortgage was 6.54 percent, down from the previous week's average of 6.58 percent. A year ago, the same rate stood at 7.88 percent.
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One-year adjustable-rate mortgages (ARMs) bucked the downward trend, averaging 5.74 percent, up from last week's average of 5.72 percent. Still, the same mortgage averaged 7.28 percent at this time last year.
"With the economy experiencing a very slow rate of growth, and inflation very much under control, mortgage rates are currently able to remain low and stable," said Robert Van Order, Freddie Mac chief economist. "In the meantime, housing remains strong, due in part to the near-record low interest rates."
[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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