Mortgage Rates Dip Again

Across the country, mortgage rates fell once again last week, with 30-year fixed mortgage rates hitting a 10-month low. Mortgage giant Freddie Mac reported that the average 30-year fixed rate fell by 4 basis points, making it the lowest the market has seen since January. January saw an average national rate on the 30-year fixed mortgage of 6.12%, which is only slightly lower than the current going average.

This is the third strait week of declining mortgage rates, the result of easing inflation pressures and a slowing economy according to market watchers. The results also show a huge drop in housing activity, which is normal for this time of year. Mortgage rates peaked in July of this year, with the 30-year fixed mortgage averaging 6.80%. A chief economist for Freddie Mac believes that the decline in fixed mortgage rates may help initiate a rebound in housing activity in the beginning of 2007. Though Freddie Mac is only one mortgage company, it is a leader in the secondary market and its activity usually reflects current market trends.\r\n