Mortgage Rates Drop for 1st Time in 5 wks. in U.S.

Rates on 30-year mortgages declined this week for the first time in 5 weeks amid expectations that the Federal Reserve Federal Reserve won't push interest rates much higher.

Housing sales, which have set records for five straight years, are expected to decline by around 7 %this year as higher mortgage rates make home ownership more expensive.

The financial market's expectation of only one additional interest-rate hike by the Fed this year has helped soften the upward pressure on long-term rates. Rates also declined for other types of mortgages this week.

Rates on 1-year adjustable rate mortgages slipped to 5.75 % from 5.83 % last week.