Mortgage Rates in Slight Decline

Rates on 30-year mortgages fell for the second consecutive week by 4 basis points to 6.01 percent with an average 0.6 point for the week ended May 15, a weekly survey released by Freddie Mac on Thursday revealed.

The average on 15-year, fixed-rate mortgages, a popular choice for refinancing, rose to 5.60 percent, up from 5.59 percent the previous week.

"Despite the bleak housing market, there was positive news on the overall state of the economy," said Frank Nothaft, vice president and chief economist at Freddie Mac.

"Retail sales, excluding automobiles, rose 0.5 percent in April, over twice that of market forecasts. Also, the consumer price index for April rose less than expected, allaying some market concerns of inflation taking hold," he concluded.

Charges on the 5/1 ARM averaged 0.6 percent, up from 0.5 percent last week, while fees and points on the one-year ARM averaged 0.7 percent compared with 0.6 percent a week ago.