McLean, VA – Results of Freddie Mac Primary Mortgage Market Survey® (PMMSSM) found that the 30-year fixed-rate mortgage (FRM) averaged 6.31 percent with an average 0.4 point for the week ending November 2, 2006, down from last week when it averaged 6.40 percent. Last year at this time, the 30-year FRM averaged 6.31 percent.

The 15-year FRM this week averaged 6.02 percent with an average 0.4 point, down from last week when it averaged 6.10 percent. A year ago, the 15-year FRM averaged 5.85 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.05 percent this week, with an average 0.5 point, down from last week when it averaged 6.14 percent. A year ago, the five-year ARM averaged 5.76 percent.

One-year Treasury-indexed ARMs averaged 5.53 percent this week with an average 0.6 point, down from last week when it averaged 5.60 percent. At this time last year, the one-year ARM averaged 5.09 percent.

"Lower than expected third quarter Gross Domestic Product (GDP) figures helped to put a damper on rising rates this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "With mortgage rates down this week, we may see a spurt of refinancing by those who want to get out of ARMs that are scheduled to reset in the next year while interest rates are still comparatively low.

"We are also seeing a higher number of homeowners who are taking cash out of their homes for home improvement or other needs rather than opting for a prime rate home equity loan now that the prime rate is over 8 percent."

Source: Freddie Mac