WASHINGTON, Aug. 8 (Xinhua) -- Mortgage rate dropped significantly in the United States last week, the U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.
For the week ending Aug. 8, 30-year fixed-rate mortgage (FRM) in the United States dropped to 3.6 percent from previous week's 3.75 percent.
The 30-year FRM, the benchmark mortgage rate, was significantly lower than the previous year. For the same period one year ago, the 30-year FRM averaged 4.59 percent.
Besides, Freddie Mac noted that 15-year FRM this week decreased to 3.05 percent, which was also lower than previous week's reading of 3.2 percent. The rate of 15-year FRM was also lower over the year and the figure was 4.05 percent for the same period a year ago.
"There is a tug of war in the financial markets between weaker business sentiment and consumer sentiment," said Sam Khater, chief economist of Freddie Mac.
"Business sentiment is declining on negative trade and manufacturing headlines, but consumer sentiment remains buoyed by a strong labor market and low rates that will continue to drive home sales into the fall," Khater added.
Freddie Mac is a corporation founded by the U.S. Congress, aimed at promoting the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. It has been conducting weekly surveys on U.S. mortgage rate since April 1971.
