Mortgage rates flat on recession fears

NEW YORK (CNNMoney.com) -- Mortgage rates were flat this week, following a disappointing service sector report, Freddie Mac said Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 5.67% for the week ending Thursday, down from 5.68% last week, and still well below rates at this time last year Freddie Mac noted.

At this time last year, the 30-year fixed-rate mortgage averaged 6.28%, Freddie Mac said.

"Economic news released in the past week showed that the economy continues to be weak," said Freddie Mac (FRE, Fortune 500) vice president and chief economist Frank Nothaft in statement Thursday.

Nothaft said that the unexpected loss of 17,000 jobs in January coupled with the negative growth in the service sector, reported by the Institute for Supply Management, contributed to the slight dip in rates.

Freddie Mac said 15-year fixed-rate loans averaged 5.15%, down from 5.17% last week. A year ago, the 15-year rate averaged 6.02%.

Rates on five-year adjustable-rate mortgages (ARMs) averaged 5.21%, down from 5.32% last week. The 5-year rate averaged 5.99% at this time last year.

One-year Treasury-indexed ARMs averaged 5.03%, down from 5.05% last week. At this time a year ago, the 1-year ARM averaged 5.49%.