Higher Mortgage Rates Slowing Home Sales

Rates on 30-year mortgages edged down this week, the first decline after six straight increases, according to a nationwide survey.

Mortgage giant Freddie Mac reported Thursday that rates on 30-year fixed-rate mortgages averaged 6.58 percent, down from 6.59 percent last week, which had been the highest level in nearly four years.

It marked the first drop in 30-year rates after six consecutive weekly increases. Analysts attributed the decline to last week's unemployment report, which showed payrolls grew by just 138,000 in April.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, also fell this week, dropping to 6.17 percent, from 6.22 percent last week.

One-year adjustable rate mortgages dipped to 5.62 percent this week, down from 5.67percent last week.

Rates on five-year, hybrid adjustable-rate mortgages averaged 6.22 percent this week, up slightly from 6.21 percent last week.

A year ago, 30-year mortgages averaged 5.77 percent, 15-year mortgages stood at 5.33 percent, one-year ARMs were at 4.23 percent and five-year ARMs averaged 5.21 percent.

Higher mortgage rates are slowing home sales this year after five consecutive years in which sales of both new and existing homes set records.