Rates Fall as ARMs Hit 8-Year Low

The average 30-year fixed mortgage rate dipped to 6.11% for the week ending Nov. 8 from 6.13% the previous week, and rates for one-year adjustable-rate mortgages fell to an eight-year low, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.51% to 5.48%, while the average rate for one-year Treasury-indexed ARMs dropped from 4.25% to 4.15%, its lowest level since February 1994. Fees and points averaged 0.6 points for fixed-rate mortgages and 0.7 points for ARMs. "Recent economic indicators show a lackluster economic climate," said Frank Nothaft, Freddie Mac's chief economist. "And that led to the surprise 50-basis-point rate cut by the Fed [on Nov. 6]. Anticipation of a 25-basis-point rate cut pushed mortgage rates downward in this week's survey, and we expect to see further downward drifts over the coming week or so as the market moves on the actual larger rate cut itself." A year ago, the average 30-year and 15-year fixed rates were 6.45% and 5.94%, respectively, and the average one-year ARM rate was 5.30%, Freddie Mac said. Freddie Mac can be found on the Web at http://www.freddiemac.com.