Mortgage Rates Drop In the US

According to Freddie Mac's weekly survey, for the fifth week in a row, mortgage rates drop, bringing them lower than they were a year ago.

The fixed-rate mortgage based on 30 years, averaged 6.14 percent for the week ending November 30, 2006, which is down from last weeks average of 6.18 percent, and it's year ago average of 6.26 percent.

On January 26, 2006 the mortgage averaged 6.12 percent, and this week's rate has been the lowest the mortgage has experienced since that date.

The fixed-rate for 15-year mortgages average 5.87 percent for this week, which is down from its average last week at 5.91 percent.

Also dropping, are the adjustable-rate mortgages, which according to the survey averaged the lowest 5-year it's seen since March 16, 2006 at 5.95 percent. One-year Treasury-indexed ARMs averaged 5.46 percent for the week, down from its 5.49 percent average last week.

Vice President and Chief Economist at Freddie Mac, Frank Nothaft, said, "The lowering rates have had an effect on mortgage applications throughout the month." "Mortgage applications for home purchase in November have remained healthy, largely because of the drop in mortgage rates and a softening in home prices in some areas," he added.

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