Rates Drop Further

The average 30-year fixed mortgage rate dropped to 6.88% for the week ending April 26 from 6.94% the previous week, according to Freddie Mac's Primary Mortgage Market Survey. The average 15-year fixed mortgage rate fell from 6.42% to 6.35%, and the average rate for one-year Treasury-indexed adjustable-rate mortgages declined from 4.95% to 4.91%, Freddie Mac said. Fees and points averaged 0.7 points for all three mortgage categories. "Although the economy is in recovery, that recovery is more fragile than had been previously thought, and Federal Reserve Chairman [Alan] Greenspan confirmed this is his recent Senate testimony," said Robert Van Order, Freddie Mac's chief international economist. "A sluggish economy lowers any threat of inflation, thereby lowering mortgage rates." A year ago, the average 30-year and 15-year fixed rates were 7.12% and 6.63%, respectively, and the average one-year ARM rate was 5.97%, Freddie Mac said. Freddie Mac can be found on the Web at http://www.freddiemac.com.