Mortgage rates dip for fourth straight week

WASHINGTON — Rates on 30-year mortgages fell for a fourth consecutive week as a slowing economy eased concerns about inflation.

Mortgage giant Freddie Mac said Thursday that 30-year, fixed-rate mortgages fell to 6.52 percent this week from 6.55 percent last week.

That was the lowest level for 30-year mortgages since they averaged 6.49 percent the week of April 13.

Mortgages had been rising since April, hitting a more than four-year high of 6.80 percent the week of July 20 before easing down.

Analysts attributed the rollback in rates to further evidence that the economy is slowing, which should ease inflation pressures.

“Long term rates continue to relax as economic reports support a picture of a weakening housing sector and a slower growing economy,” said Frank Nothaft, chief economist at Freddie Mac.

Nothaft said this week’s news that new home construction fell by 2.5 percent in July added to the belief that a slowing housing market will contribute to lower overall growth. This, in turn, will reduce inflation pressures and allow the Federal Reserve to call a halt to further rate hikes.

The central bank last week left rates unchanged, breaking a two-year period of rate increases, although policy-makers left the door open to further rate hikes if inflation becomes a problem.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, averaged 6.20 percent this week, unchanged from last week.