Mortgage rates down again

Thursday, June 5th 2003, 12:00 am
By: News On 6

(New York-Dow Jones/AP) -- Another week, another record low for mortgage rates.

Freddie Mac says 30-year fixed-rate mortgages have dropped from an average five-point-31 percent to five-point-26 this week. That's a new low in the mortgage company's weekly survey, which dates back to the 1970s.

Last year at this time, 30-year mortgages were averaging six-point-71 percent.

Freddie Mac's chief economist Frank Nothaft (NOHT'-haft) says anticipation that the Federal Reserve may cut rates again has combined with further weakness in parts of the economy to cause mortgage rates to fall again. However, he points out that the economy is poised for growth in the near future and may begin a gentle upswing soon.

Fifteen-year mortgage rates also have fallen to a record low this week, and one-year adjustables are down as well.