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30-Year Mortgage Rates Dip Again, to 6.63%

Mortgage rates around the country dipped for the second week in a row, a dose of encouraging news for people thinking about buying a home.

Mortgage company Freddie Mac, in its weekly survey released Thursday, said that rates on 30-year fixed-rate mortgages dropped to a nationwide average of 6.63 percent for the week ended Aug. 2. That was down from the previous week's rate of 6.72 percent and was the lowest since mid-June.

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Piggyback Loans Are Risky Business

What do you call a loan to help someone scrape together enough money to make a down payment on a home just so that person can then qualify to take out a mortgage on that home?

Wall Street's answer: an opportunity to create new securities, of course.

So-called second-lien mortgage loans have found a new home in the portfolios of some of the same money managers and pension funds that have been buying bonds created from mortgage loans made to "subprime" borrowers with less-than-stellar finances.

The creation of all sorts of newfangled mortgages, many of which delay principal payments, has ...

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