Not Much Change Seen In Mortgage Rates During The Holiday Season

McLean, VA – Results of Freddie Mac Primary Mortgage Market Survey® (PMMSSM) found that the 30-year fixed-rate mortgage (FRM) averaged 6.13 percent with an average 0.4 point for the week ending December 21, 2006, up slightly from last week when it averaged 6.12 percent. Last year at this time, the 30-year FRM averaged 6.26 percent.

The 15-year FRM this week averaged 5.89 percent with an average 0.4 point, up from last week when it averaged 5.86 percent. A year ago, the 15-year FRM averaged 5.79 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.96 percent this week, with an average 0.5 point, up from last week when it averaged 5.92 percent. A year ago, the five-year ARM averaged 5.82 percent.

One-year Treasury-indexed ARMs averaged 5.44 percent this week with an average 0.6 point, down slightly from last week when it averaged 5.45 percent. At this time last year, the one-year ARM averaged 5.22 percent.

"A quiet week for financial markets translated into a quiet week for mortgage rates as well," said Frank Nothaft, Freddie Mac vice president and chief economist. "This isn't much of a surprise, as traditionally the December holiday season tends to be rather slow for housing.

What is interesting to note is that the 30-year FRM this week is 1/8 of a percentage point lower than the 30-year FRM was at this time last year. This may result in more mortgage activity in the new year, and indeed we have seen a spike in refinancing over the past few weeks as rates have come down. Borrowers who have ARMs that are scheduled for a rate adjustment in 2007 may choose to refinance over the next several months to take advantage of the low fixed rates that are currently available."

Source: Freddie Mac