30-Year Mortgage Rates Drop to 6.04% Average

Mortgage rates dropped for a third straight week, reflecting the impact the weakening economy is having on financial markets.

Freddie Mac reported Thursday that rates on 30-year fixed-rate mortgages averaged 6.04 percent last week, down from 6.14 percent the previous week. It marked a sharp decline since rates hit a recent high of 6.46 percent during the week of Oct. 16.

Concerns about the economy and worries over the fate of Detroit's three automakers have caused Wall Street's major stock indexes to hit levels not seen since 2003, sending investors swiftly into government debt.

Rates on other types of mortgages also fell last week. For 15-year fixed-rate mortgages, rates dropped to 5.73 percent from 5.81 while rates on five-year adjustable-rate mortgages fell to 5.87 percent from 5.98 percent and rates on one-year adjustable-rate mortgages edged down to 5.29 percent from 5.33 percent.

The mortgage rates do not include points. The nationwide fee for 30-year and 15-year mortgages averaged 0.7 of a point last week. The fee on five-year adjustable-rate mortgages averaged 0.6 of a point while the fee on one-year adjustable-rate mortgages averaged 0.5 of a point.

A year ago the nationwide average rate on 30-year mortgages stood at 6.2 percent while 15-year mortgage rates averaged 5.81 percent, five-year adjustable-rate mortgages were at 5.88 percent, and one-year adjustable-rate mortgages stood at 5.42 percent.