30-Year Rate Hits 5-Month Low

The average 30-year fixed mortgage rate for the week ending June 19 fell to 6.94% from 7.04% the previous week, the lowest rate in five months and the first time it has dropped below 7% since the week ended Feb. 20, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell to 6.62% from 6.71%, while the average rate for one-year Treasury-indexed adjustable-rate mortgages dipped to 5.68% from 5.71%. Fees and points averaged 1.0 for the 30-year mortgages and 1.1 for the 15-years and the ARMs. "Interest rates were primarily influenced by the Asian economic problems, and most specifically by the Japanese economic problems," said Robert Van Order, Freddie Mac's chief economist. "And although we may see mortgage rates rise slightly in next week's survey, we don't expect rates will be very much higher at all, remaining very affordable well into the summer." The 30-year rate was the lowest since the week ended Jan. 16 when it fell to 6.89%, with average fees and points of 1.3. A year ago, the average 30-year and 15-year fixed rates were 7.61% and 7.14%, respectively, and the average one-year ARM rate was 5.66%. Freddie Mac's website address is www.freddiemac.com.