30-year rate falls to 5.99%

August 08, 2004|By BLOOMBERG NEWS

U.S. mortgage rates fell last week after reports of a cooling economy eased pressure on borrowing costs, Freddie Mac said.

The average fixed rate on the benchmark 30-year mortgage dropped to 5.99 percent from 6.08 percent. The one-year adjustable rate fell to 4.08 percent from 4.17 percent. The 15-year fixed rate was 5.40 percent, compared with 5.49 percent the previous week.

The Commerce Department recently reported that the U.S. economy grew at the slowest pace in more than a year from April through June. The department reported Tuesday that U.S. consumer spending declined in June by the most since the terrorist attacks of September 2001.

"Additional economic indicators this week confirmed that June was a weak month for the nation as a whole," Frank Nothaft, chief economist at Freddie Mac, said in a statement. "Mortgage rates have been most accommodating for homebuyers lately."

The decline in the 30-year rate was the sixth in seven weeks. The rate hit an eight-month high of 6.34 percent in May.

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