June 23, 2005 LOS ANGELES -- Last week the
home loan market saw interest rates for mortgages increase from the 14-month low
point they were at a few days prior. This week rates have re-positioned
themselves to lows nearing the record.
On Thursday, industry giant Freddie Mac said that
rates for 30-year fixed mortgages dropped to an average 5.57% from last week's
5.63% average.
This week's drop in rates came following forecasting by Bill Gross of PIMCO.
Gross announced that his belief is that the
Federal Reserve will likely unwind their campaign to gradually and measurably
increase rates throughout 2005. Gross believes the Federal Reserve will
contradict this course of action by lowering rates later this year now that
inflation woes are seemingly a thing of the past.
This week we also saw declines in rates for
15-year fixed home loans as well as five-year adjustable rates.
- Article by
Stockton Marquette.
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