Mortgage Rate Down 2nd Week

Mortgage rates fell for the second week in a row from indication of a cooler economy ahead and less concern for inflation. The second-quarter gross domestic product came in weaker than what the market had expected.

According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.63% in the week that ended today -- down from its 6.72% average last week. At this time last year, the loan averaged 5.82%. The 15-year fixed rate averaged at 6.27% this week, again a fall from last week's 6.34%. At this time last year this rate was 5.38%.

Rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged at 6.27% decreasing from last week's 6.35%. This rate averaged 5.30% a year ago. The 1-year Treasury-indexed ARMs also moved down this week to 5.69% from last week's rate of 5.78%. At this time in 2005, the 1-year ARM averaged only 4.47%.