Gradual Rise In Fixed Rate Mortgage Rates Continued This Week, According To Freddie Mac's Weekly Survey
May 5, 2006
McLean, VA – Freddie Mac's Primary Mortgage Market SurveySM (PMMSSM) this week revealed that the 30-year fixed-rate mortgage (FRM) averaged 6.59 percent, with an average 0.6 point, for the week ending May 4, 2006, up very slightly from last week's average of 6.58 percent. Last year at this time, the 30-year FRM averaged 5.75 percent. The 30-year FRM has not been higher since the week ending June 20, 2002, when it averaged 6.63 percent.
The average for the 15-year FRM this week is 6.22 percent, with an average 0.6 point, also up very slightly from last week's average of 6.21 percent. A year ago, the 15-year FRM averaged 5.31 percent. The 15-year FRM has not been higher since the week ending May 24, 2002, when it averaged 6.28 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.21 percent this week, with an average 0.7 point, unchanged from last week when it averaged 6.21 percent. A year ago, the five-year ARM averaged 5.16 percent.
One-year Treasury-indexed ARMs averaged 5.67 percent this week, with an average 0.8 point, down very slightly from last week when it averaged 5.68 percent. At this time last year, the one-year ARM averaged 4.22 percent.
Mortgage rates have drifted upward for the sixth week running, which is consistent with Freddie Mac's economic forecast," said Frank Nothaft, Freddie Mac vice president and chief economist. "We expect that mortgage rates will continue to trend upward over the coming year, but that upward trend will be modest at best.
"Meanwhile, with gradually rising rates, refinance activity can be expected to shift. Fewer families will be refinancing, but of those who are, a larger percentage will be drawing some equity out of their homes, many to pay off previously existing home equity loans and lines of credit as those loans become more expensive."
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Source: Freddie Mac