30-Year Rates Dip to 6.47 Percent
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Saturday, August 23, 2008; Page G02
Rates on 30-year mortgages fell this week to the lowest level since mid-July.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages dipped to 6.47 percent this week, from 6.52 percent, which had been the rate the previous three weeks. The new rate was the lowest since the week of July 17 when 30-year mortgages stood at 6.26 percent.
The 30-year mortgage has been above 6 percent since late May as financial markets have become convinced that rising inflation pressures will keep the Federal Reserve from cutting interest rates further even though the economy remains weak.
The housing market slump continues. The government reported this week that new-home construction fell in July to the slowest pace in more than 17 years, and the National Association of Home Builders said builder confidence remained at an all-time low in August.
Frank E. Nothaft, chief economist for Freddie Mac, said the industry will be watching next week when new figures are released on housing prices. They have been falling sharply over the past year as sellers struggle with slumping demand caused by the weak economy, tighter bank lending standards, and a glut of unsold homes caused by rising mortgage foreclosures.
The Freddie Mac survey showed other mortgage rates were mixed this week.
Rates on 15-year, fixed-rate mortgages fell to 6 percent, from 6.07 percent last week.
Rates on five-year, adjustable-rate mortgages averaged 5.99 percent this week, down from 6.02 percent last week.
However, rates on one-year, adjustable-rate mortgages bucked the downward trend, increasing to 5.29 percent, from 5.18 percent last week.
The mortgage rates do not include add-on fees known as points.
AWARDS . . . The Maryland-National Capital Building Industry Association received four Association Excellence awards from the National Association of Home Builders. They were in the categories of Best Communication-Update Publication, Best Communication-Special Events Publication, Best Specialty Targeted Fundraising Program, and Best Community Service Project. PERSONNEL . . . Richmond American Homes hired Rod Hart as president of its Maryland division. Hart will also oversee the company's Delaware Valley division in the Philadelphia area. He was formerly an executive with Pulte Homes.
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