MCLEAN, Va., Sept. 1 (UPI) -- The price of a 30-year fixed rate mortgage in the United States over the last seven days fell to 5.71 percent, Freddie Mac said Thursday.
The average rate was down from the previous reporting period's 5.77 percent.
"Market jitters about high energy costs and the spill over into other sectors of the economy have led to a decline in bond yields, which typically means lower mortgage rates," said Frank Nothaft, vice president and chief economist at Freddie Mac. "And speculation that the Federal Reserve may soon take a break in raising short-term rates reduces upward pressure on long- and short-term interest rates.
"As if all that wasn't enough, the devastation caused by Hurricane Katrina and the echo effects on future energy prices in the U.S. may mean that mortgages rates will fall even further in the coming days ahead."
