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January 18, 2008
30-Year Mortgages Fall to 5.69 Percent, Lowest Rate Since 2005
Long-term mortgage rates remain in a downward pattern, registering the third week in a row of declining interest. According to Freddie Mac's numbers, average interest on 30-year fixed loans settled the week at 5.69 percent--the lowest level since July 2005. Rates for 15-year fixed mortgages slipped to 5.21 percent from 5.43 percent a week ago; while the five-year adjustable-rate average retreated to 5.4 percent from 5.63 percent, and interest on one-year ARMs dropped to 5.26 percent from 5.37 percent. Observers generally agree that borrowing costs will remain at or near 6 percent for 2008 unless a U.S. recession surfaces--in which case they expect rates to decline further.
Posted by S. Germain at January 18, 2008 08:10 AM