Falling Mortgage Rates Break More Records

The average 30-year and 15-year fixed mortgage rates have dropped to record lows for the eighth consecutive week, according to Freddie Mac's Primary Mortgage Market Survey.The former fell to 5.26% from 5.31% and the latter edged downward to 4.66% from 4.73% for the week ending June 6. The average rate for one-year Treasury-indexed adjustable-rate mortgages was 3.59%. Fees and points averaged 0.5 points for 30- and 15-year mortgages and 0.6 points for one-year Treasury ARMs. "Anticipation that the Federal Reserve may well cut rates at its next meeting, combined with further weakness in certain sectors of the economy, caused interest rates to fall once again," said Frank Nothaft, Freddie Mac's chief economist, in a written statement released by the government-sponsored enterprise. "However, the economy is poised for growth in the near future and may begin a gentle upswing." A year ago, the average 30-year and 15-year fixed rates were 6.71% and 6.18%, respectively, and the average one-year ARM rate was 4.71%, Freddie Mac reported. Freddie Mac can be found online at http://www.freddiemac.com.