Median House Prices Slip As Mortgage Rates Edge Up, According To Freddie Mac's Survey
October 27, 2006
McLean, VA – Results of Freddie Mac Primary Mortgage Market Survey® (PMMSSM) found that the 30-year fixed-rate mortgage (FRM) averaged 6.40 percent with an average 0.4 point for the week ending October 26, 2006, up from last week when it averaged 6.36 percent. Last year at this time, the 30-year FRM averaged 6.15 percent.
The 15-year FRM this week averaged 6.10 percent with an average 0.4 point, up from last week when it averaged 6.06 percent. A year ago, the 15-year FRM averaged 5.69 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.14 percent this week, with an average 0.6 point, up from last week when it averaged 6.11 percent. A year ago, the five-year ARM averaged 5.63 percent.
One-year Treasury-indexed ARMs averaged 5.60 percent this week with an average 0.7 point, up from last week when it averaged 5.57 percent. At this time last year, the one-year ARM averaged 4.91 percent.
"At its most recent meeting, the Federal Reserve (Fed) again declined to raise rates for the third time, citing a slowdown in the housing market," said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, the median price of both new and existing homes in September posted significant decreases. And some areas of the country may experience a few bumps up and down as the housing industry corrects itself in the coming months.
"On a positive note, new home sales in September came in at a higher-than-expected pace, while the number of homes for sale on the market dropped. This should help support housing prices going forward."
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Source: Freddie Mac