LOW MORTGAGE RATES ARE A SURPRISE
June 2, 2005
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Defying predictions, U.S. mortgage rates are lower than they were a year ago and are falling, the Washington Post reported. The rate on the average 30-year fixed-rate mortgage fell to 5.65 percent in the week that ended May 26, the lowest rate since mid-February and below the 6.32 percent level of a year ago, according to mortgage financier Freddie Mac.
“The housing market is going to be robust if rates stay where they are,” said Freddie Mac’s chief economist, Frank Nothaft. “But it’s hard for me to fathom why they would stay this low for long.”
