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Mortgage rates drop for 3rd week

Washington -- Interest rates for 30-year fixed-rate mortgage loans fell for the third consecutive week, the Federal Home Loan Mortgage Corp. said Thursday.

The 30-year, fixed-rate mortgage averaged 4.99 percent with an average 0.7 points during the week ending Jan. 21, Freddie Mac said.

A week ago, 30-year, fixed-rate mortgages averaged 5.06 percent. A year ago, rates averaged 5.12 percent.

At 4.4 percent with an average 0.6 points, the 15-year, fixed-rate average also fell, dropping from the previous week's average of 4.45 percent.

A year ago, 15-year fixed rate mortgages averaged 4.8 percent.

"Fixed mortgage rates followed bond yields lower for the third consecutive week," said Frank Nothaft, Freddie Mac vice president and chief economist.

"Similarly, adjustable-rate mortgage rates eased along with shorter-term rates, as the federal funds futures market indicates no increase in the Federal Reserve's target rate following its upcoming committee meeting on January 26-27," he said.

Copyright 2010 by United Press International.

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