Rates on 15-year fixed-rate mortgages dropped to 5.92 percent from 6.04 percent. The five-year adjustable-rate mortgage fell to 5.78 percent from 5.99 percent. The rate on a one-year adjustable-rate mortgage declined to 5.17 percent from 5.27 percent.

Rates don't include add-on fees known as points. The fee for 30-year, 15-year and one-year mortgages all averaged 0.6 point this week. The fee on five-year mortgages averaged 0.7 point.

Associated Press

Former Refco director gets 16 years in prison

Phillip Bennett, the former head of Refco Inc. who was blamed for the collapse of one of the world's largest commodities brokerages, was sentenced to 16 years in prison by a federal judge in New York who decried the “staggeringly arrogant” greed of white-collar criminals.

Bennett, 59, a British citizen living in Gladstone, N.J., previously pleaded guilty to conspiracy to commit securities fraud and other charges for the eight-year fraud. Bennett said he didn't mean to hurt anyone. His voice cracked when he apologized to his family for their “unimaginable agony.”

The judge told Bennett to remain at his New Jersey home until he reports to prison Sept. 4. The judge rejected a request by prosecutors that he be sent to prison immediately.

Associated Press

China trying to control speculative cash flow

Beijing is tightening financial controls on trade to curb multibillion-dollar flows of speculative “hot money” into China that regulators say could fuel inflation.

The government said it is trying to stop financial inflows that evade China's strict controls and are believed to be adding to pressure for prices to rise at a time when inflation is at 12-year highs. Speculators are believed to be trying to profit from a rise in China's currency, the yuan, against the U.S. dollar.

Authorities will start checking invoices to make sure they are not being inflated as an excuse to bring extra money into China without approval. The State Administration of Foreign Exchange said the measures take effect July 14.

Associated Press