30-year mortgage back below 6%

[notiCIas]

30-year mortgage back below 6%

Rates snap 7-week runup, 30-year falls to 5.93%,15-year drops to 5.48%; 1-year down to 4.23%
April 7, 2005: 11:07 AM EDT


NEW YORK (CNN/Money) - Long-term mortgage rates fell below 6 percent, snapping a seven-week rise, as both long- and short-term rates slipped, Freddie Mac said Thursday.

The average rate on 30-year fixed-rate mortgages dropped to 5.93 percent for the week ending April 7, 2005, with an average 0.7 of a point payable up front. This rate is down from last week's average 6.04 percent.

Last year at this time, the rate on the 30-year fixed-rate loan stood at 5.79 percent.

The average 15-year mortgage rate averaged 5.38 percent, with a 0.7 percent payable up front, down from 5.58 percent the previous week. A year ago, the 15-year rate averaged 5.12 percent.

"Mortgage rates slipped this week on news that job creation in March came out much lower than had been expected," said Frank Nothaft, vice president and chief economist. "This would indicate there is less money being spent and therefore, less inflationary pressure on the economy.

"Although mortgage rates will rise this year, we expect the 2005 annual average will be below levels recorded just three years ago."

Five-year adjustable-rate mortgages (ARMs) averaged 5.33 percent, with an average 0.7 point payable up front, down from 5.43 percent the week before. There is no data available for a year-to-year comparisons since Freddie Mac began tracking this mortgage rate at the start of 2005.

One-year adjustable rate mortgages (ARMs) averaged 4.23 percent, down from last week's 4.24 percent, with an average 0.7 of a point payable up front. At this time last year, the one-year ARM rate averaged 3.65 percent.

Freddie Mac's (up $0.18 to $63.98, Research) average mortgage rates are based on a survey of 125 lenders nationwide.