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Mortgage Rates Ease On News Consumer Spending May Slow

September 5, 2008

Rates eased lower according to Freddie Ma's Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage (FRM) dropped to an average 6.35 percent with an average 0.6 point for the week ending September 4, 2008, comapred to last week when it averaged 6.47 percent. Last year at this time, the 30-year FRM averaged 6.67 percent.

The 15-year FRM this week averaged 5.90 percent with an average 0.6 point, down from last week when it averaged 5.93 percent. A year ago at this time, the 15-year FRM averaged 6.15 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.97 percent this week, with an average 0.6 point, down from last week when it averaged 6.03 percent. A year ago, the 5-year ARM averaged 6.32 percent.

One-year Treasury-indexed ARMs averaged 5.15 percent this week with an average 0.6 point, down from last week when it averaged 5.33 percent. At this time last year, the 1-year ARM averaged 5.74 percent.

“Mortgage rates eased a bit over the holiday-shortened week following release of economic data that suggest consumer spending may slow,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The economy grew at an upwardly revised 3.3 percent pace in the second quarter, boosted by the smallest trade deficit in eight years, and residential fixed investment slowed growth by 0.6 percent, the least amount since the same period a year ago.

“However, personal income fell 0.7 percent in July, the first decline since August 2005 and will likely slow consumer spending in the third quarter.”

The National Mortgage Rate Snapshop
This Week One Week Ago One Year Ago
30-Yr 15-Yr 5-Yr
1-Yr ARM
6.35 5.90 5.97 5.15
0.7 0.6 0.6 0.6
30-Yr 15-Yr 5-Yr
1-Yr ARM
6.40 5.93 6.03 5.33
0.6 0.6 0.6 0.7
30-Yr 15-Yr 5-Yr
1-Yr ARM
6.46 6.15 6.32 5.74
0.5 0.5 0.6 0.6

Source: Freddie Mac

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