Mortgage rates show no change
By Martin Crutsinger
Associated Press Economics Writer
WASHINGTON — Rates on 30-year mortgages were unchanged this week as a flood of new economic data left financial markets' general views on inflation unaffected.
Mortgage company Freddie Mac reported yesterday that 30-year fixed-rate mortgages averaged 6.73 percent this week, the same as last week. That left the rate close to its high-point of the year, the 6.74 percent set the week of June 14.
Government reports this week showed that inflation at the wholesale and consumer levels came down in June, reflecting big declines in gasoline prices. But gasoline costs have been rising again in July.
Federal Reserve chief Ben Bernanke, delivering a midyear economic forecast, told Congress that inflation remains the central bank's biggest worry.
"In a week marked by stock indexes reaching new highs on Wall Street, mortgage rates lingered near the previous week's level as the latest economic indicators did not affect inflation expectations," said Frank Nothaft, chief economist at Freddie Mac.
At their most recent meeting, on June 27-28, Federal Reserve policy-makers kept a key interest rate unchanged while noting that some readings on core inflation had improved. Many economists believe the Fed, which last changed rates a year ago, will remain on hold into 2008.
According to the Freddie Mac survey, rates on 15-year fixed-rate mortgages, a popular choice for refinancing, edged down slightly to 6.38 percent this week, from 6.39 percent last week.
Rates on five-year adjustable-rate mortgages averaged 6.35 percent this week, the same as last week. One-year adjustable-rate mortgages edged up slightly to 5.72 percent from 5.71 percent.