By BLOOMBERG NEWS

July 9, 2004

The average rate on a benchmark 30-year mortgage fell to a two-month low of 6.01 percent this week, which may give a fresh lift to home sales, Freddie Mac said yesterday.

The decrease, from 6.21 percent a week earlier, was the largest since Jan. 16, according to Freddie Mac, the No. 2 purchaser of mortgages. Rates have fallen amid economic reports that suggest the expansion may have cooled, reducing the pressure on borrowing costs.

The rate is the lowest since 6.01 percent in the week that ended April 30. Last year at this time, the 30-year rate was 5.40 percent.

The one-year adjustable rate fell to an average 4.05 percent from 4.19 percent, its biggest drop since the week that ended Jan. 16. The average 15-year fixed rate fell to 5.42 percent from 5.62 percent.

The recent declines have spurred an increase in the number of people wanting home loans.

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