Arizona Real Estate Notebook

6.16% and 0.7 points – 30-year fixed-rate mortgage, average in Western U.S. for week ending November 23, 2006. Blue line is Freddie Mac forecast made 11/02/2006.

“Housing starts in October were down more than expected, which the market saw as an indication housing would be a bigger drag on the economy than had previously been thought,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Slower growth usually means less inflation and less inflation means lower interest rates. Hence, the drop in mortgage rates this week.”