It appears that Christmas has come a month late! Long-term mortgage rates remain in a downward pattern, registering the third week in a row of declining interest. According to Freddie Mac’s numbers, average interest on 30-year fixed loans settled the week at 5.69% – the lowest level since July 2005.
Rates for 15-year fixed mortgages slipped to 5.21% from 5.43% a week ago; while the five-year adjustable-rate average retreated to 5.4% from 5.63%, and interest on one-year ARMs dropped to 5.26% from 5.37%. Observers generally agree that borrowing costs will remain at or near 6 percent for 2008 unless a U.S. recession surfaces – in which case they expect rates to decline further. However, today’s Asian and European black Monday points to the fact that rates will continue to dramatically drop.