Mortgage rates fizzleBoth long-term and short-term rates drop on signs that inflation is waning; 30-year fixed hits 6.24%.NEW YORK (CNNMoney.com) -- Mortgage rates fell sharply this week on early signs that inflation may be less of a threat, according to a survey released Thursday. "The Producer Price Index (PPI) and Consumer Price Index (CPI) for October came in lower than expected and bond yields dropped, pulling mortgage rates lower," said Frank Nothaft, Freddie Mac vice president and chief economist.
The 30-year fixed-rate mortgage (FRM) averaged 6.24 percent for the week ending Nov. 16, down from 6.33 percent, according to Freddie Mac's (Charts) Primary Mortgage Market Survey. A year ago, the 30-year FRM averaged at a higher level: 6.37 percent. The 15-year FRM averaged 5.94 percent this week, down from 6.04 percent last week. A year ago, it averaged 5.90 percent. Rates for five-year adjustable-rate mortgages (ARMs) came in at 6.08 percent this week, up from 6.05 percent last week. A year ago, they averaged 5.81 percent. One-year ARMs averaged 5.55 percent, up from 5.53 percent last week. A year ago, the one-year ARM averaged 5.12 percent. "We've probably seen the worst of the housing slump, although it may not have entirely bottomed out yet," said Nothaft. "On the other hand, lower mortgage rates should help stimulate activity in the housing market." --------------------------------------------------- Mortgage applications hit highest since January |
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