U.S. 30-, 15-year mortgage rates fall second straight week

WASHINGTON, Nov 13 (Reuters) - U.S. 30- and 15-year
mortgage rates fell for a second straight week, according to a
survey released on Thursday by home funding company Freddie
Mac.

U.S. 30-year mortgage rates fell to an average of 6.14
percent from 6.20 percent in the latest week, while 15-year
mortgage rates dipped to an average of 5.81 percent from 5.88
percent last week.

One-year adjustable rate mortgages, or ARMs, inched upward
in the week to an average of 5.33 percent from 5.25 percent
last week.

Freddie Mac said the "5/1" ARM, set at a fixed rate for
five years and adjustable each following year, fell to an
average of 5.98 percent from 6.19 percent a week earlier.

A year ago, 30-year mortgage rates averaged 6.24 percent,
15-year mortgages 5.88 percent and the one-year ARM 5.50
percent. The 5/1 ARM averaged 5.96 percent.

"Long-term mortgage rates fell slightly this week as signs
the overall economy is weakening brought interest rates down
market-wide," said Frank Nothaft, Freddie Mac vice president
and chief economist, in a statement.

"In addition, the actions of the Fed (Federal Reserve) in
recent weeks to assist commercial paper markets appear to be
thawing part of the credit freeze that has gripped capital
markets in the U.S., giving banks some breathing room," he
said.

Last week the National Association of Realtors said its
September index of U.S. pending existing home sales fell 4.6
percent to 89.2.

Lenders charged an average of 0.7 percent in fees and
points on 30- and 15-year mortgages, and 0.6 percent on the 5/1
ARM, all unchanged from last week.

They charged 0.5 percent on the one-year arm, up from 0.4
percent a week earlier.

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 Melissa Bland)