U.S. mortgage rates relatively stable

WASHINGTON, Aug. 7 (UPI) -- Interest rates for 30-year, fixed-rate U.S. mortgages were unchanged from the previous week, the Federal Home Loan Mortgage Corp. said Thursday.

The 30-year, fixed-interest rate mortgage averaged 6.52 percent with an average 0.7 points for the week ending Aug 7, Freddie Mac said.

A year ago, 30-year, fixed-rate mortgages were slightly higher at 6.59 percent.

At 6.1 percent with an average 0.7 points, the 15-year, fixed-rate average increased from the previous average of 6.07 percent. A year ago, 15-year fixed rate mortgages averaged 6.25 percent, the report said.

"The housing market is continuing to act as a drag on the economy," said Frank Nothaft, Freddie Mac vice president and chief economist.

"Residential fixed investment subtracted 0.6 percentage points off second quarter growth in real GDP," Nothaft said in a statement.

Mortgage applications and unsold homes also paint the picture.

Applications for home purchases fell to the slowest pace since February 2003, while "the inventory of unsold homes remains at historically high levels." he said.