U.S. mortgage rates drop during week

WASHINGTON, May 15 (UPI) -- Interest rates for 30-year, fixed-rate mortgages declined in the United States in the last week, the Federal Home Loan Mortgage Corp. said Thursday.

The 30-year fixed interest rate mortgages averaged 6.01 percent with an average 0.6 points, down from the previous week's 6.05 interest rate. It was the second week of declines, after a 6.06 percent average for the week ending May 1, Freddie Mac said.

A year ago, 30-year fixed rate mortgages averaged 6.15 percent.

At 5.6 percent with an average 0.5 points, the 15-year fixed rate average was unchanged on the week. A year ago, 15-year fixed-rate mortgages averaged 5.87 percent.

"Despite the bleak housing market, there was positive news on the overall state of the economy," Freddie Mac chief economist Frank Nothaft said.

"Retail sales, excluding automobiles, rose 0.5 percent in April, over twice that of market forecasts," Nothaft said.

"Also, the consumer price index for April rose less than expected, allaying some market concerns of inflation taking hold," he said.