The News Tribune (Lite) - Mortgage rates tumble again as markets continue to suffer

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Section: Business

Mortgage rates tumble again as markets continue to suffer

THE ASSOCIATED PRESS
WASHINGTON – Mortgage rates dropped for a third 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 6.04 percent this week, down from 6.14 percent last week. It marked a sharp fall since rates hit 6.46 percent during the week of Oct. 16.

Concerns about the economy and worries over the fate of Detroit’s Big Three automakers caused have caused Wall Street’s major stock indexes to hit levels not seen since 2003, sending investors swiftly into government debt.

Rates on other types of mortgages also fell this week. For 15-year, fixed-rate mortgages, rates dropped to 5.73 percent, from 5.81 percent last week.

Rates on five-year, adjustable-rate mortgages fell to 5.87 percent, from 5.98 percent. Rates on one-year, adjustable-rate mortgages fell to 5.29 percent, from 5.33 percent.