Interest Rates Held Low

Investors' waning fears about inflation helped drive down rates on 30- and 15-year mortgages this week to their lowest numbers since late February, according to market observers. Interest on 30-year, fixed loans averaged 5.71 percent this week, down from 5.77 percent a week ago; and 15-year, fixed mortgages averaged 5.27 percent this week, compared to 5.33 percent last week, according to the weekly survey from Freddie Mac. "As long as inflation is held in check there is little or no pressure to push mortgage rates higher," said Freddie Mac chief economist Frank Nothaft. Fuel prices are high, he added, but "core" inflation remains under control. Source, Chicago Tribune.