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Monday, January 24, 2005
30-Year Mortgage Rates Fall for 3rd Week Rates on 30-year mortgages fell for a third straight week as investors' concerns about inflation were eased by reports showing that prices fell in December. The weekly survey, released Thursday by the mortgage company Freddie Mac, showed that rates on 30-year, fixed-rate mortgages averaged 5.67 percent for the week ending Jan. 20, compared with 5.74 percent the previous week. Low mortgage rates have powered the housing industry in recent years. Sales are expected to set records for both new homes and existing homes when all the results for 2004 are in. Analysts are forecasting that housing will enjoy another good year in 2005 if mortgage rates do not rise too sharply, given the Federal Reserve's credit-tightening campaign to ensure that inflation stays in check. Economists said worries about inflation were eased with Wednesday's report showing that consumer prices dipped 0.1 percent in December, reflecting the biggest drop in energy costs since July. "Financial markets see inflation as being well managed by the Fed, and that allows long-term interest rates to remain low, with mortgage rates even falling a little more this week," said Frank Nothaft, Freddie Mac's chief economist. Read Full Story |
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