Mortgage rates slide for second straight week
Freddie Mac reports 30-year sinks to 6.63% on weak GDP numbers, warns that number will drift over next few months.
NEW YORK (CNNMoney.com) -- Mortgage rates declined for the second straight week on signs that the economy is growing at a slower pace than expected, Freddie Mac reported Thursday.
The average rate on 30-year fixed-rate loans fell to 6.63 percent for the week ending August 2 from 6.72 percent the week before.
A year ago, the 30-year mortgage rate averaged 5.82 percent.
"Second quarter Gross Domestic Product [GDP] came in weaker than the market had expected. This means inflation is less of a threat, and that translates into lower mortgage rates," Frank Nothaft, Freddie Mac vice president and chief economist said in a prepared statement.
"Although lower rates are a welcome sight, we still feel that the 30-year fixed-rate mortgage rate will drift up and down somewhat over the next few months, but will average less than seven percent for the year," Nothaft added.
Freddie Mac said the 15-year rate slipped to an average of 6.27 percent from 6.34 percent the previous week. A year ago, the 15-year rate averaged 5.38 percent.
Five-year adjustable-rate mortgages fell to 6.27 percent from 6.35 percent last week. The five-year ARM averaged 5.30 percent a year ago.
The average one-year adjustable-rate mortgage also fell, slipping to 5.69 percent from 5.78 percent. At this time last year, the loan averaged 4.47 percent.