Mortgage rates dip

Rates on 30-year and 15-year mortgages this week dropped to their lowest levels since late February.

Mortgage giant Freddie Mac reported Thursday in its weekly survey that rates on 30-year, fixed-rate mortgages averaged 5.71 percent, down from 5.77 percent last week. Analysts attributed the decline in mortgage rates to reduced fears on the part of investors that the economy might face an outbreak of inflation.

For 15-year, fixed-rate mortgages, rates dipped to 5.27 percent this week, down from 5.33 percent last week.

Interstate Bakeries

K.C. bakery cutting jobs in Northeast

Bankrupt Interstate Bakeries on Thursday said it would close bakery on the East Coast and cut 1,400 more jobs in its ongoing effort to reduce costs.

The Kansas City, Mo.-based company, maker of lunchbox staples Hostess Twinkies and Wonder Bread, said it would close its bakery in New Bedford, Mass., and consolidate production, delivery routes, depots and thrift stores throughout the Northeast.

The moves are expected to be complete by mid-August.

Energy

Westar envisions need for new plants

Westar Energy Inc. likely will need to build a new coal-fired power plant in the next eight years to handle growing demand, the company’s chief executive officer said.

The Topeka-based utility is rapidly approaching the limit of its current ability to generate electricity, CEO James Haines said, and the company likely will need a plant by 2008 to provide extra energy during the summer months, when air conditioning increases power use. Such plants typically use natural gas.

By 2012 or 2013, however, the customer base will have grown enough to warrant a large “base load” plant to generate electricity year-round. That plant would likely burn coal, like the majority of Westar’s existing plants, including one at the edge of Lawrence.