US Mortgage Rates Driven Downward by Weak Economic ReportsLocation: McLean
The 15-year FRM this week
averaged 5.47 percent with an average 0.5 point, downfrom last week when
it averaged 5.72 percent. A year ago at this time, the 15-year FRM
averaged 5.86 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.34 percent this week, with an average 0.5 point, down from last week when it averaged 5.43 percent. A year ago, the 5-year ARM averaged 5.90 percent. One-year Treasury-indexed ARMs averaged 4.94 percent this week with an average 0.5 point, down from last week when it was 5.11 percent. At this time last year, the 1-year ARM averaged 5.47 percent (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) “Weak economic reports that indicated declines in the job market, slowing in manufacturing and low consumer confidence drove bond yields lower this week and mortgage rates followed,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Interest rates for 30-year fixed-rate mortgages are now at the same levels as they were two weeks ago, erasing last week’s upward jump. “Meanwhile, the housing market continues to take a toll on the rest of the economy. Residential fixed investment shaved 1.25 percentage points off economic growth in the fourth quarter of 2007. More recently, the median sales price of new homes fell 15.1 percent in January, representing the largest annual drop on record. Residential construction fell 19.7 percent over the twelve-months ending January 2008, the largest decline since March 2007.”
PRIMARY MORTGAGE MARKET SURVEY RESULT 30-YEAR FIXED RATE MORTGAGES
15-YEAR FIXED RATE MORTGAGES
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.75 2.76 2.74 2.76 2.77 2.75 1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.75 2.73 2.75 2.77 2.79 2.73 THE NATIONAL MORTGAGE RATE SNAPSHOT
Freddie Mac's Primary Mortgage Market Survey (PMMS) is for informational purposes only and Freddie Mac is not responsible for business decisions made based on the reported results of the PMMS. Freddie Mac may change the methodology used to conduct the PMMS survey at any time and without notice.
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