30-Year Rates Fall to 6.26%

30-Year Rates Fall to 6.26%

(December 2, 2005) -- Good news. The national average commitment rate on a 30-year, fixed mortgage dropped to 6.26 percent from 6.28 percent during the past week, marking the second straight decline, according to Freddie Mac.

Analysts attribute the decrease to economic uncertainty but predict that mortgage borrowing costs will move upward as the Federal Reserve implements additional short-term rate hikes.

The national average commitment rate on a 15-year, fixed mortgage, meanwhile, held steady at 5.81 percent. The average rate on a one-year, adjustable-rate mortgage rose to 5.16 percent from 5.14 percent, and the five-year hybrid ARM edged up to 5.76 percent from 5.75 percent.