Mortgage Rates Fall; Confidence Declines

The potential for war with Iraq and sagging consumer confidence pulled U.S. mortgage rates this week to the lowest level since 1965, home finance giant Freddie Mac said.

The No. 2 U.S. home funding company said 30-year mortgage rates fell to 5.85%, their lowest since an average 5.83% in 1965, from 5.93% a week ago. The 30-year loan has remained below the 7% level since mid-April.

U.S. consumer confidence also posted a surprisingly steep decline in December.

The Consumer Confidence Index dropped to 80.3 in December from a revised 84.9 in November. The decline marked its sixth drop in seven months.