30-year mortgages dip to 6.35 percent

September 5, 2008

WASHINGTON Rates on 30-year mortgages fell for a third straight week, dropping to the lowest level since mid-July. Freddie Mac, the mortgage company, reported yesterday that 30-year, fixed-rate mortgages dipped to 6.35 percent this week, down from 6.40 percent, the previous week. It marked the third consecutive decline and left rates at the lowest level since July 17, when they stood at 6.26 percent. The 30-year mortgage, which hit a high for this year at 6.63 percent July 24, 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. Frank Nothaft, chief economist for Freddie Mac, attributed this week's decline to recent reports indicating that consumer spending might slow further.

Associated Press