Mortgage rates continue decline

NEW YORK (CNNMoney.com) -- Mortgage rates continued to fall as the weak housing market remained a drag on the economy, Freddie Mac reported Wednesday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan fell to 6.20 percent for the week ended Nov. 21 from 6.24 percent the prior week. At this time last year, the 30-year FRM averaged 6.18 percent.

The 30-year rate has not been lower since the week ending May 10, 2007, when it averaged 6.15 percent, Freddie Mac said.

"The housing market remains weak, continuing to be a drag on the economy, said Freddie Mac (Charts, Fortune 500) chief economist Frank Nothaft, noting that single-family housing starts fell 6.4 percent in October to 917,000 units, the slowest pace since September 1991 and nearly 25 percent below that of October 2006.

"Additionally, homebuilder confidence in November remained at the lowest level on record," Nothaft said.

Freddie Mac said rates on 15-year fixed-rate loans averaged 5.83 percent, down from 5.88 percent last week. A year ago, the 15-year rate averaged 5.91 percent. The 15-year rate has not been lower since the week ending February 2, 2006, when it averaged 5.81 percent.

Five-year adjustable-rate mortgages (ARMs) averaged 5.88 percent this week, down from 5.96 percent last week. A year ago, the five-year ARM averaged 5.99 percent.

One-year Treasury indexed ARMs averaged 5.42 percent this week, from 5.50 percent last week. At this time last year, the one-year ARM averaged 5.49 percent.