Recession fears push mortgage rates down

WASHINGTON – Rates on 30-year mortgages fell last week to the lowest level in a month as investors found new reasons to worry about a possible recession.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.07 percent this week.

That was down from 6.17 percent last week and was the lowest level for 30-year mortgages since the week of Dec. 6 when they fell to a two-year low of 5.96 percent.

Analysts attributed the decline in part to some weaker-than-expected economic reports.

The Institute for Supply Management reported that its closely watched gauge of manufacturing activity dipped to the lowest level in nearly five years.

Frank Nothaft, chief economist at Freddie Mac, said that the fall in the manufacturing index could possibly be a “harbinger of a more substantial economic slowdown” at the start of this year.

Other types of mortgage rates also experienced declines this week, according to the Freddie Mac survey.

Rates on 15-year mortgages, a popular choice for refinancing, dropped to 5.68 percent this week, down from 5.79 percent last week. Rates on five-year adjustable-rate mortgages declined to 5.78 percent, compared to 5.90 percent last week. Rates on one-year ARMs fell to 5.47 percent, down from 5.53 percent last week.

A year ago, 30-year mortgages stood at 6.18 percent. Rates on 15-year mortgages were at 5.94 percent while five-year adjustable-rate mortgages averaged 6.02 percent and one-year ARMs were at 5.42 percent.