30-year mortgage rate falls slightly to 6.05%

Associated Press

May 9, 2008

WASHINGTON - Rates on 30-year mortgages edged down slightly this week, but remained above 6 percent for the third straight week.

Mortgage giant Freddie Mac reported yesterday that 30-year fixed-rate mortgages averaged 6.05 percent this week, compared with 6.06 percent last week. It marked the third week that 30-year rates have been above 6 percent.

Analysts said rates for all mortgages didn't change much this week as the housing industry continues to confront the worst downturn in more than 20 years.

"The housing market is still struggling amid falling house prices and stricter lending standards," said Frank E. Nothaft, chief economist at Freddie Mac. "Coupled with higher delinquency and foreclosure rates, a smaller share of families own their homes this year."

The national homeownership rate stood at 67.8 percent in the first three months of this year, according to figures from the Census Bureau.