Mortgage rates drop slightly in week

WASHINGTON, Oct. 9 (UPI) -- Interest rates for 30-year, fixed-rate U.S. mortgages declined in the week ending Oct. 9, the Federal Home Loan Mortgage Corp. said Thursday.

The 30-year, fixed-rate mortgage averaged 5.94 percent with an average 0.6 points in the week, which followed two weeks of rate increases, Freddie Mac said.

A week ago, 30-year, fixed-rate mortgages averaged 6.1 percent. A year ago, they averaged 6.4 percent, the mortgage broker said.

At 5.63 percent with an average 0.6 points, the 15-year, fixed-rate average also declined, dropping from the previous week's average of 5.78 percent. A year ago, 15-year fixed-rate mortgages averaged 6.06 percent, the report said.

"Longer-term mortgage rates fell for the first time in three weeks, roughly following bond market yields," said Frank Nothaft, Freddie Mac vice president and chief economist.

"Meanwhile, the latest housing market data showed some pickup in home purchase activity in August. Pending existing home sales in August rose 7.4 percent, reflecting the largest monthly increase since October 2001, and July's figures had an upward revision, according to the National Association of Realtors," he said.