Mortgage Rates Edge Up This Week In Response To Fed Actions
March 31, 2006
McLean, VA – Freddie Mac (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM) found that the 30-year fixed-rate mortgage (FRM) averaged 6.35 percent, with an average 0.5 point, for the week ending March 30, 2006, up from last week’s average of 6.32 percent. Last year at this time, the 30-year FRM averaged 6.04 percent.
The average for the 15-year FRM this week is 6.00 percent, with an average 0.5 point, up from last week’s average of 5.97 percent. A year ago, the 15-year FRM averaged 5.58 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.02 percent this week, with an average 0.6 point, up from last week when it averaged 5.96 percent. A year ago, the five-year ARM averaged 5.43 percent.
One-year Treasury-indexed ARMs averaged 5.51 percent this week, with an average 0.8 point, up from last week when it averaged 5.41 percent. At this time last year, the one-year ARM averaged 4.33 percent.
“The Fed raised rates this week, as was expected, but the market was a little surprised at the Committee’s comments, which implied more tightening in the future,” said Frank Nothaft, Freddie Mac vice president and chief economist. “That raised the expectation that inflation may be more of a threat than was previously thought, and that kind of thinking promotes upward pressure on mortgage rates like we saw across the board this week.”
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Source: Freddie Mac
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