Mortgage Rates Dip Again

Last week, mortgage rates dipped to a 10-month low, making analyst wonder if mortgage applications will go up. Though the holiday season is normally slow for mortgages, the low rates may spur refinances.

Across the country, mortgage rates fell once again last week, with 30-year fixed mortgage rates hitting a 10-month low. Mortgage giant Freddie Mac reported that the average 30-year fixed rate fell by 4 basis points, making it the lowest the market has seen since January. January saw an average national rate on the 30-year fixed mortgage of 6.12%, which is only slightly lower than the current going average.

This is the third strait week of declining mortgage rates, the result of easing inflation pressures and a slowing economy according to market watchers. The results also show a huge drop in housing activity, which is normal for this time of year. Mortgage rates peaked in July of this year, with the 30-year fixed mortgage averaging 6.80%. A chief economist for Freddie Mac believes that the decline in fixed mortgage rates may help initiate a rebound in housing activity in the beginning of 2007. Though Freddie Mac is only one mortgage company, it is a leader in the secondary market and its activity usually reflects current market trends.\r\n

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