Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Mortgage rates fall after last week's spike

Rates on 30-year fixed mortgages fell to 6.04% from 6.46% on news of mild inflation, weak housing market.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Lara Moscrip, CNNMoney.com contributing writer

Mortgage Rates
30 yr fixed 3.82%
15 yr fixed 3.11%
5/1 ARM 3.41%
30 yr refi 3.80%
15 yr refi 3.11%

Find personalized rates:
 

Rates provided by Bankrate.com.

NEW YORK (CNNMoney.com) -- The 30-year mortgage rate fell this week after last week's spike, which was its biggest weekly jump since April 1987.

Mortgage finance firm Freddie Mac (FRE, Fortune 500) reported Thursday that 30-year fixed-rate mortgages averaged 6.04% this week. That's down from 6.46% last week and below 6.33%, where the rate stood a year ago.

Frank Nothaft, Freddie Mac vice president and chief economist, attributes the decline in mortgages rates to "news of tame inflation and a weaker housing market."

New construction of one-family homes fell in September to the lowest annual rate since February 1982. And housing starts are 70% below their January 2006 peak, while homebuilder confidence reached an all-time low in October, according to Nothaft.

Rates on 15-year fixed-rate mortgages fell to 5.72%, from 6.14% last week. A year ago, that rate was 5.99%

The five-year adjustable-rate mortgage fell to 6.06%, down from last week at 6.14%. A year ago, the rate was 6.03%.

The rate on a one-year adjustable-rate mortgage increased slightly to 5.23%, compared to 5.16% last week. At this time last year, the rate was 5.66%.

Keith Gumbinger of HSH Associates, a publisher of mortgage information, attributed the prior week's spike to the massive federal bailout (full story). The Treasury needs to sell a great number of new Treasury bills to raise money to fund new government guarantees.

In September, the government took control of the mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac with a rescue plan that could inject $200 billion into them to keep them afloat.  To top of page

Find mortgage rates in your area


Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
How to enjoy Paris like a local Leave the tourist trail behind and enjoy wine, gastronomy, perfume, art, dance like a Parisian. More
Playboy founder Hugh Hefner through the years Cultural icon Hugh Hefner pushed barriers with his controversial Playboy magazine. He died at the age of 91. More
5 innovators: How we deal with stress The founders of companies like Allbirds, Robinhood and Paperless Post talk about how they deal with stress. More