Mortgage Rates Drop From 11-Month High

Rates on 30-year mortgages, after rising for five straight weeks, fell slightly this week with suggestions that the economic drag from housing could last longer than expected.

Mortgage giant Freddie Mac reported yesterday that 30-year, fixed-rate mortgages averaged 6.69 percent this week. That was down from 6.74 percent last week, when rates were the highest in 11 months.

Analysts said the slight retreat occurred because investors saw two weak reports on housing as indications that troubles in the slumping sector are continuing to mount.

The government said construction of new homes and apartments fell 2.1 percent in May, leaving building activity 24.2 percent below the level of a year ago.

Builders have been slashing prices and offering other incentives to move a glut of unsold homes. Demand has been hurt by mounting troubles in the market for subprime mortgages, loans offered to borrowers with weak credit histories.

"Mortgage rates eased this week due to market concerns that the housing market will be a longer drag on the economy," said Frank Nothaft, Freddie Mac's chief economist.

The overall economy slowed to a 0.6 percent growth rate in the first quarter, the weakest performance in more than four years, with housing one of the key factors depressing activity.

All mortgage rates tracked by Freddie Mac fell this week.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, fell to 6.37 percent, down from 6.43 percent last week.

Five-year adjustable-rate mortgages averaged 6.31 percent, down from 6.37 percent while one-year adjustable mortgages fell to 5.66 percent, from 5.75 percent last week.

The mortgage rates do not include add-on fees known as points. Thirty-year and 15-year mortgages each carried a nationwide average fee of 0.5 points. Five-year adjustable mortgages carried a fee of 0.6 point, while one-year ARMs had a fee of 0.7 points.

A year ago, rates on 30-year mortgages stood at 6.71 percent, 15-year mortgages were at 6.36 percent, five-year adjustable-rate mortgages averaged 6.32 percent and one-year ARMs were at 5.75 percent.

PERSONNEL . . . Weichert Realtors named Judith F. White corporate vice president of management development for the company's National Capital Region, which includes the District, Maryland and Virginia. . . . McEnearney Associates Realtors promoted several executives. Julia Kriss is now the managing broker for the company's new Washington-Spring Valley office. Glenn Lewis is managing broker in the Arlington office. Michael Day is assistant managing broker in the Old Town Alexandria office.

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