U.S. mortgage rates declined last week

WASHINGTON, July 3 (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 average 30-year fixed interest rate averaged 6.35 percent with an average 0.6 point for the week ending July 3, compared with 6.45 percent for the previous week, Freddie Mac said.

A year ago, 30-year fixed rate mortgages averaged 6.63 percent.

At 5.92 percent with an average 0.6 point, the 15-year fixed rate average dropped from the previous week's average of 6.04 percent.

A year ago, 15-year fixed rate mortgages averaged 6.3 percent, the report said.

"Mortgage rates reversed their three-week rise, falling this week after the release of the latest Federal Reserve's policy statement that it expects inflation to moderate later this year," said Frank Nothaft, Freddie Mac vice president and chief economist.

"Housing affordability fell in April due to gains in median house prices during the month." he said. "However, even with the recent erosion in affordability, homes were still more affordable in April than during the 2005-2007 period of skyrocketing house prices."