Mortgage Rates Fall Amid Consumer Concerns

Mortgage rates around the country edged down this week as consumer confidence continued to decline. The average interest rate on 30-year fixed-rate mortgages fell to 7.03%, down from 7.12% last week, Freddie Mac said. A year ago, 30-year mortgages averaged 8.27% and were rising. Rates hit a five-year high of 8.64% in mid-May. Consumer confidence fell in February, the fifth monthly decline, the Conference Board reported Tuesday. Fifteen-year mortgages, a popular option for refinancing, declined to 6.58% last week, down from 6.69% the previous week. A year ago, 15-year mortgages averaged 7.84%. On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 6.39%, compared with 6.43% the week before. Last year, one-year ARMs averaged 6.68%.