30-Year Rates Dip to 6.35 Percent

Rates on 30-year mortgages, which had been rising for five straight weeks, posted a decline this week as signals from the Federal Reserve eased worries about imminent rate increases.

(Washington post) -- Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.35 percent this week. That was down from 6.45 percent last week, which had been the highest level since September.

The decline pushed the rate to its lowest level in three weeks, but it remained above 6 percent, where it has been since the week of May 29.

Frank E. Nothaft, chief economist at Freddie Mac, said financial markets were relieved with the statement from the Federal Reserve last week that eased concerns about imminent rate hikes.

The central bank brought to an end an aggressive rate-cutting campaign and said that the risks of inflation had increased.

However, nothing in the Fed's policy statement hinted that the central bank would start raising rates soon.