Rates Fall Again

The average 30-year fixed mortgage rate fell to 7.42% for the week ending Dec. 15 from 7.54% theweek before, according to Freddie Mac's Primary Mortgage Market Survey. The average 15-year fixed mortgagerate fell from 7.19% to 7.11%, while the average rate for one-year Treasury-indexed adjustable-rate mortgages droppedfrom 7.21% to 7.05%. Fees and points averaged 1.0 point for ARMs and 0.9 point for fixed-rate mortgages. "Employmentdata released last week shows job growth at a lower-than-expected rate and reaffirms the notion that the economyis slowing," said Robert Van Order, Freddie Mac's chief economist. "That is the kind of news that easesinflation fears, which, in turn, allows mortgage rates to settle at lower levels. The Producer Price Index released[Dec. 14] also points to a low level of inflation, bolstering the feeling in the financial markets that the FederalReserve may lower rates early in the new year." A year ago, the average 30-year and 15-year fixed rates were7.86% and 7.47%, respectively, and the average one-year ARM rate was 6.49%, Freddie Mac said.