Mortgage rates flat

NEW YORK (CNNMoney.com) -- Mortgage rates were flat this week as the housing industry continues to experience high inventories and slow sales, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.4 percent for the week ended Oct. 11, which was unchanged from last week.

Last year at this time, 30-year mortgage rates averaged 6.36 percent.

"In his October 15th speech, Fed Chairman Bernanke suggested housing would be a 'significant drag' on the economy going into the next year," said Frank Nothaft, Freddie Mac's (Charts, Fortune 500) chief economist, in a statement.

"Indeed, inventories of unsold homes remained exceptionally high. And October's homebuilder confidence fell to the lowest level since 1985, when record keeping began," he said.

In its latest report, Freddie Mac said rates on 15-year fixed-rate loans averaged 6.08 percent in the latest week, up from 6.06 percent last week. A year ago, the 15-year rate averaged 6.06 percent.

Five-year adjustable-rate mortgages (ARMs) averaged 6.11 percent this week, down slightly from 6.12 percent last week. A year ago, the 5-year ARM averaged 6.11 percent.

One-year ARMs averaged 5.76 percent this week, up from 5.73 percent last week. They were at 5.57 percent this time last year.