The Associated Press Published: November 14th, 2008
WASHINGTON – Mortgage rates dropped for a second straight week, reflecting the impact the weakening economy is having on financial markets.Mortgage giant Freddie Mac reported Thursday that rates on 30-year, fixed-rate mortgages averaged 6.14 percent this week, down from 6.20 percent last week. It marked a sharp decline since rates hit a high of 6.46 percent two weeks ago.
Analysts attributed the back-to-back decreases to financial markets growing more confident that the Federal Reserve will cut rates again at its final meeting of the year in December in an effort to combat a severe slowdown many economists fear could deepen into a prolonged recession.
“Long-term mortgage rates fell slightly this week as signs the overall economy is weakening brought interest rates down market-wide,” said Frank Nothaft, chief economist for Freddie Mac.
Thirty-year mortgage rates hit a high for the year of 6.63 percent in late July and then dropped to a seven-month low of 5.78 percent for the week ending Sept. 18.
Copyright 2008 Associated Press.
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