30-year mortgage rates fall sharply

WASHINGTON — Rates on 30-year mortgages fell to the lowest level in five months as evidence mounted that the economy is slowing down. Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages dipped to 6.26 percent this week, down from 6.33 percent last week. It was the lowest level since 30-year mortgages were at 6.21 percent the week of May 17.

Analysts attributed this week’s decline to further evidence that the steep slump in housing is getting worse and other parts of the economy are slowing as well. “Continued market concerns about weaker economic growth and further declines in the housing market have kept mortgage rates low over the last few weeks,” said Frank Nothaft, chief economist at Freddie Mac. The Federal Reserve on Wednesday cut a key interest rate by a quarter-point, marking the second rate reduction in the past six weeks.

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