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Mortgage Rates Fall

November 10, 1999

WASHINGTON (AP) _ The average interest rate on 30-year fixed-rate mortgages fell to 7.67 percent this week, the lowest level since late July.

The average was down from 7.84 percent last week, according to a weekly survey released Thursday by Freddie Mac, the mortgage company. The average for the week ending Nov. 12 was the lowest since the week ending July 23 when the 30-year rate was at 7.52 percent.

Mortgages rates have been on an upward climb this year. The average rates on a 30-year mortgage have hit a low of 6.74 percent set at the end of January and a high of 8.15 percent set in mid August.

Fifteen-year mortgages, a popular option for refinancing, averaged 7.30 percent this week, also down from the average of 7.45 percent last week.

On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 6.30 percent this week, down from 6.34 percent the previous week.

The rates do not include add-on fees known as points, which averaged at or just over 1 percent of the loan amount for all three types of mortgages.

Rates eased for the second week in a row as several economic reports released over the past couple of weeks showed inflation under control, said Robert Van Order, Freddie Mac’s chief economist. But Wednesday’s report on wholesale inflation is rekindling concerns that the Federal Reserve may raise interest rates for a third time this year on Nov. 16, he said.

Separately, the Mortgage Bankers Association of America said that mortgage loan applications for the week ending Nov. 5 decreased 2.8 percent from the previous week and were down 46.6 percent compared to the same week last year.

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