Rates Change Course and Dip

The average rate on 30-year, fixed-rate mortgages was 6.28%, down from 6.37% a week earlier, for the week ending November 24, according to Freddie Mac's weekly survey.The average for 15-year FRMs was 5.81%, down from 5.90% a week earlier. Five-year, Treasury-indexed hybrid adjustable-rate mortgages averaged 5.75%, down from 5.86% a week earlier. One-year Treasury ARMs averaged 5.14%, down from 5.20%. Rates remained substantially higher than at this time in 2004, however. Freddie Mac chief economist Frank Nothaft attributed the decline in rates to lower oil prices, which helped alleviate some inflationary fears during the week of November 24. "That helped to reduce upward pressure on interest rates last week, allowing mortgage rates to ease a bit for the first time in 13 weeks."