Mortgage rates fell last week, supported by stable bond yields. The average 30 year fixed rate mortgage fell to 6.82% on Friday. The 15 year fixed rate dropped to 6.51%, and the 1 year ARM stayed at 5.67%.

The bond market reacted negatively to Friday's Producer Price Index announcement by the Commerce Department. Overall prices fell by 0.01%, but the core rate, excluding energy and food, was up 0.02% which was slightly higher than expected. Traders pushed the yield on the benchmark 30 year Treasury up to 5.62%, which is about where it started the month.

Published: July 13, 1998

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