Rates Decline

The average 30-year fixed mortgage rate fell to 7.65% for the week ending Dec. 1 from 7.73%, according to Freddie Mac's Primary Mortgage Market Survey. The average 15-year fixed mortgage rate fell from 7.41% to 7.35%, while the average rate for one-year Treasury-indexed adjustable-rate mortgages decreased from 7.28% to 7.24%. Fees and points averaged 0.9 point for all three mortgage categories. "While still strong, last month's existing home sales came in lower than expected, a good indication that the housing market is slowing down from its recent record-breaking levels," said Robert Van Order, Freddie Mac's chief economist. "Coupled with the fact that gross domestic product showed the slowest rate of growth in four years, inflation fears eased a bit this week, and so did mortgage rates. Now, as we begin to perhaps wind down from the longest expansion in history, all indications are that housing is in for a soft landing, with no sign of a recession in the housing market." A year ago, the average 30-year and 15-year fixed rates were 7.84% and 7.46%, respectively, and the average one-year ARM rate was 6.49%, Freddie Mac said.