Mortgage rates drop for second straight week

WASHINGTON — Rates on 30-year mortgages edged down for a second week as financial markets interpreted weakness in consumer confidence and home sales as evidence that the economy is still mired in a period of lackluster growth.

In its weekly survey, mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.16 percent nationwide this week, down slightly from 6.17 percent last week.

The decline put the 30-year rate very close to its low of the year of 6.14 percent in early March.

Analysts attributed the slight decline to reports showing that consumer confidence dropped in April to the lowest level in eight months while sales of existing homes fell by the largest amount in 18 years.

“Recent economic data … caused the market to pause and reevaluate the potential growth of the economy this year,” said Frank Nothaft, chief economist at Freddie Mac. “This allowed all mortgage rates to decline slightly this week.”

He noted that mortgage rates so far this year have been relatively stable with the 30-year fluctuating in a narrow range that saw it go as high as 6.34 percent in early February and as low as 6.14 percent for the first two weeks in March.

Other mortgage rates also fell this week, Freddie Mac said in its nationwide survey.

Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, dipped to 5.87 percent, down from 5.89 percent last week.

Five-year adjustable-rate mortgages averaged 5.88 percent, compared with 5.92 percent last week. One-year adjustable-rate mortgages edged down to 5.43 percent from 5.45 percent last week.

The mortgage rates do not include add-on fees known as points.