US 30-year mortgage rates fall in latest week

WASHINGTON, March 6 (Reuters) - Weak economic indicators pushed interest rates on U.S. 30-year mortgages down this week after three consecutive weeks of gains, home funding company Freddie Mac (FRE.N: Quote, Profile, Research) said on Thursday.

U.S. 30-year mortgage rates averaged 6.03 percent compared to 6.24 percent a week earlier, while 15-year mortgages fell to an average of 5.47 percent from 5.72 percent.

One-year adjustable rate mortgages (ARM) declined to their lowest level in more than two years, averaging 4.94 percent compared to 5.11 percent last week.

Freddie Mac said the "5/1" ARM, set at a fixed rate for five years and adjustable each following year, averaged 5.34 percent, down from 5.43 percent the prior week.

"Weak economic reports that indicated declines in the job market, slowing in manufacturing and low consumer confidence drove bond yields lower this week and mortgage rates followed," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

As mortgage rates fell, Nothaft said the housing market continued to be a drag on the rest of the economy.

"Residential fixed investment shaved 1.25 percentage points off economic growth in the fourth quarter of 2007," he said.

A year ago, 30-year mortgages averaged 6.14 percent, 15-year mortgages 5.86 percent and the one-year ARM 5.47 percent. The 5/1 ARM averaged 5.90 percent.

The National Association of Realtors reported on Thursday that pending sales of previously owned homes were unchanged January.