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Mortgage rates move lower
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December 3, 1998: 3:56 p.m. ET
Interest rates on 30-year loan fall for third consecutive week, hit two-month low
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NEW YORK (CNNfn) - Long-term mortgage rates continued their descent this week, hitting their lowest level in nearly two months, mortgage firm Freddie Mac said Thursday.
For the week ending Dec. 4, the rate on U.S. 30-year fixed mortgages fell to an average 6.71 percent, from last week's 6.78 percent. Fifteen-year loans also slipped to an average of 6.37 percent from 6.44 percent the week before.
One-year adjustable rate mortgages were slightly lower as well, averaging 5.52 percent after last week's 5.54 percent.
A year ago, interest rates on 30-year mortgages were 7.15 percent, 15-year rates were 6.71 percent, and adjustables came in at 5.5 percent.
"The healthy housing economy continues as was shown in the rise in sales of new homes in October, along with the upward revision of September's figures," said Robert Van Order, Freddie Mac chief economist.
"Although a slowdown in the booming housing market is imminent, it will be a slowing from record levels, and it is fully expected that the industry will remain vigorous in the year to come," Van Order said.
On Wednesday, the Commerce Department reported an 0.8 percent gain in new-home sales in October. The increase came as a surprise to analysts. Year to date, 752,000 new homes have sold, a 9 percent increase from 692,000 homes in the comparable 1997 period.
Nationally, the median sales price of new homes sold in October was $150,000.
Freddie Mac said lenders charged an average 0.9 percent in fees and points on 30- and 15-year mortgages, and 1.0 percent on the ARM, all unchanged from last week. 
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