U.S. rates on 30-year mortgages drop to lowest level in a month

Rates on 30-year mortgages in the United States fell this week to the lowest level in a month as new data showed the economy has been slowing down, mortgage giant Freddie Mac reported Thursday.

In the week ending November 2, rates on 30-year, fixed-rate mortgages dropped to 6.31 percent from 6.40 percent last week. That was the lowest level since those rates averaged 6.30 percent four weeks ago.

Other types of mortgages also declined this week.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, fell to 6.02 percent from 6.10 percent last week.

Rates on one-year adjustable rate mortgages (ARMs) decreased to 5.53 percent from 5.60 percent while rates on five-year ARMs were down to 6.05 percent from 6.14 percent.

A year ago, 30-year mortgages averaged 6.31 percent, while 15- year mortgages stood at 5.85 percent, one-year ARMs were at 5.09 percent and the five-year ARMs at 5.76 percent.

The drops in mortgage rates came after reports showed the economy has been slowing, a development that could help reduce inflation pressures.

Last Friday, the Commerce Department reported that the overall economy grew at a sluggish rate of 1.6 percent in the third quarter, the weakest pace in more than three years.

Source: Xinhua