U.S. 30-year mortgage rates fall in latest week

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U.S. 30-year mortgage rates dropped to an average of 5.98 percent from 6.01 percent last week, as 15-year mortgages also dipped to an average of 5.55 percent from 5.60 percent.

WASHINGTON (Reuters) - U.S. 30-year mortgage rates fell for a third consecutive week, according to a survey released by home funding company Freddie Mac <FRE.N> on Thursday.

U.S. 30-year mortgage rates dropped to an average of 5.98 percent from 6.01 percent last week, as 15-year mortgages also dipped to an average of 5.55 percent from 5.60 percent.

One-year adjustable rate mortgages, or ARMs, rose to an average of 5.24 percent in the week from 5.18 percent.

Freddie Mac said the "5/1" ARM, set at a fixed rate for five years and adjustable each following year, averaged 5.61 percent, up from 5.57 percent a week earlier.

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A year ago, 30-year mortgage rates averaged 6.37 percent, 15-year mortgages 6.06 percent and the one-year ARM 5.64 percent. The 5/1 ARM averaged 6.02 percent.

"Interest rates for fixed-rate mortgages fell slightly this week on news of both weaker industrial production in April and consumer sentiment falling in May to its lowest level since June 1980," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

"ARM rates, however, rose slightly on market forecasts that the Federal Reserve (Fed) may not pursue any more rate cuts over the near term," Nothaft said.

Lenders charged an average of 0.5 percent in fees and points on 30-year mortgages, down from 0.6 percent last week, and 0.6 percent on the one-year ARM, also down from 0.7 percent.

Charges on 15-year mortgages averaged 0.6 percent, up from 0.5 percent last week.

Fees and points on the 5/1 ARM were unchanged at an average of 0.6 percent.

Freddie Mac is a mortgage finance company chartered by Congress that buys mortgages from lenders and packages them into securities to sell to investors or to hold in its own portfolio.

(Reporting by Ayesha Rascoe; Editing by Kenneth Barry)