Fixed Rates Dip

The average 30-year fixed mortgage rate dipped to 5.88% for the week ending Feb. 7 from 5.90% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.28% to 5.27%, while the average rate for one-year Treasury-indexed adjustable-rate mortgages remained unchanged at a record low of 3.89%. Fees and points averaged 0.6 points for 15-year fixed-rate mortgages and 0.7 points for 30-year fixed-rate mortgages and ARMs. "Mortgage rates are in a holding pattern right now as the country tries to smooth out the knots in the economy," said Frank Nothaft, Freddie Mac's chief economist. "Low rates are a real boost to an already thriving housing market. Not only did we see record home sales and the national homeownership rate peak [at] an all-time high of 68.3% last year, but 2003 is shaping up to be equally as strong." A year ago, the average 30-year and 15-year fixed rates were 6.88% and 6.36%, respectively, and the average one-year ARM rate was 5.04%, Freddie Mac said. Freddie Mac can be found on the Web at http://www.freddiemac.com.