Rate falls to 5.79% on 30-year mortgage

15-year rate is 5.12%

1-year ARM is 3.79%

April 27, 2003|By BLOOMBERG NEWS

The rate on 30-year U.S. fixed mortgages fell for a second week amid signs of sluggish economic growth, according to Freddie Mac, the No. 2 buyer of mortgages.

The average rate on a 30-year fixed-rate mortgage decreased to 5.79 percent for the week that ended Friday, from 5.82 percent the week before. That compares with a record low of 5.61 percent in mid-March. Freddie Mac began keeping records in 1971.

The average rate on a 15-year mortgage, a popular refinancing option, held at 5.12 percent. The average rate on a one-year adjustable-rate mortgage held at 3.79 percent. Falling mortgage rates may underpin housing, which was a source of strength for the economy last year.

"A tepid national economy has anchored mortgage rates to current low levels so far this year," said Frank Nothaft, chief economist for Freddie Mac.

Last week's rate on a 30-year mortgage would put the average monthly payment on a $100,000 loan, including principal and interest with 1 point, at $586.12, down from $657.26 a year ago, when the 30-year rate was 6.88 percent.

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