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Mortgage rates fall again
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January 10, 2002: 12:03 p.m. ET
Rates at lowest point in five weeks as financial markets relax.
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NEW YORK (CNN/Money) - The 30-year fixed-rate mortgage fell slightly this week as the market activity eased on investors' hopes of an economic rebound, economists said.
According to Freddie Mac, the long-term mortgage averaged 7.06 percent in the week ending Jan.11, with an average 0.8 point, dipping slightly from 7.14 percent last week. A year ago, the 30-year fixed-rate was at 6.89 percent.
The 15-year fixed-rate mortgage this week averaged 6.55 percent, with an average 0.7 point, falling from last week's 6.62 percent. The same mortgage stood at 6.49 percent during the year-ago week.
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At the same time, one-year adjustable-rate mortgages (ARMs) indexed to the Treasury averaged 5.26 percent this week, with an average 0.8 point, unchanged from last week's average. One-year ARMs averaged 6.65 percent at this time last year.
"Feeling more comfortable about the upcoming economic rebound, the financial markets relaxed a bit this week," Frank Nothaft, chief economist at Freddie Mac, said. "With the market more settled this week, interest rates on fixed-rate mortgages eased this [week] to the lowest rate in five weeks."
He added that indicators point to a strong year for home purchases, including the fact that low mortgage rates continue to keep the housing industry a float.
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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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