Long- and Short-Term Rates Have Declined To Levels Last Seen In First Quarter 2006

McLean, VA – Results of Freddie Mac Primary Mortgage Market Survey® (PMMSSM) found that the 30-year fixed-rate mortgage (FRM) averaged 6.11 percent with an average 0.5 point for the week ending December 7, 2006, down from last week when it averaged 6.14 percent. Last year at this time, the 30-year FRM averaged 6.32 percent. This is the lowest the 30-year FRM has been since the week ending January 19, 2006, when it averaged 6.10 percent.

The 15-year FRM this week averaged 5.84 percent with an average 0.5 point, down from last week when it averaged 5.87 percent. A year ago, the 15-year FRM averaged 5.87 percent. This is the lowest the 15-year FRM has been since the week ending February 9, 2006 when it averaged 5.83 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.92 percent this week, with an average 0.5 point, down from last week when it averaged 5.95 percent. A year ago, the five-year ARM averaged 5.78 percent. This is the lowest the 5-year ARM has been since the week ending February 9, 2006, when it averaged 5.89 percent.

One-year Treasury-indexed ARMs averaged 5.43 percent this week with an average 0.7 point, down from last week when it averaged 5.46 percent. At this time last year, the one-year ARM averaged 5.16 percent. This is the lowest the 1-year ARM has been since March 23, 2006 when it averaged 5.41 percent.

"Continued signs of slowing in the housing market and weakness in the manufacturing sector helped keep mortgage rates down this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "As a matter of fact, the 30-year FRM is very nearly the lowest it has been this year. The only other time the 30-year FRM has been lower was in January when it fell to 6.10 percent.

"Looking forward in the housing market, we think that housing is about 2/3 of the way through the correction, and should stabilize by mid-year 2007."

The National Mortgage Rate Snapshop
This Week	One Week Ago	One Year Ago
30-Yr 15-Yr 5-Yr ARM 1-Yr ARM 6.14 5.87 5.95 5.46 0.4 0.4 0.5 0.7	30-Yr 15-Yr 5-Yr ARM 1-Yr ARM 6.14 5.87 5.95 5.46 0.4 0.4 0.5 0.7	30-Yr 15-Yr 5-Yr ARM 1-Yr ARM 6.32 5.87 5.78 5.16 0.6 0.6 0.7 0.8

Source: Freddie Mac