Mortgage rates decline marginally

WASHINGTON, March 6 (UPI) -- Interest rates for 30-year fixed-rate mortgages in the United States declined slightly to 6.03 percent in the last week, Freddie Mac reported Thursday.

The average 30-year fixed interest rate decreased from last week's average of 6.24 percent with mortgages including an average of 0.5 points. The 30-year fixed-rate mortgage averaged 0.6 points a week ago, the report said.

For the same week of 2007, the 30-year fixed rates averaged 6.14 percent.

Fifteen-year fixed rate mortgages also declined. The average interest rate hit 5.47 percent with 0.5 points, Freddie Mac, the Federal Home Loan Mortgage Corp., said. In the previous week, the average was 5.72 percent.

"Weak economic reports that indicated declines in the job market, slowing in manufacturing and low consumer confidence drove bond yields lower this week and mortgage rates followed," Freddie Mac chief economist Frank Northaft said.

"Meanwhile, the housing market continues to take a toll on the rest of the economy," he said.

"Residential fixed investment shaved 1.25 percentage points off economic growth in the fourth quarter of 2007," he said. "More recently, median sales price of new homes fell 15.1 percent in January, representing the largest annual drop on record."