Longer Term Mortgage Rates Drift Slightly Higher This Week
May 19, 2006
One-Year ARM Remains Unchanged
McLean, VA – The Freddie Mac Primary Mortgage Market SurveySM (PMMSSM) found the 30-year fixed-rate mortgage (FRM) averaged 6.60 percent, with an average 0.5 point, for the week ending May 18, 2006, up from last week's average of 6.58 percent. Last year at this time, the 30-year FRM averaged 5.71 percent. The 30-year FRM has not been higher since the week ending June 20, 2002, when it averaged 6.63 percent.
The average for the 15-year FRM this week is 6.20 percent, with an average 0.5 point, up from last week's average of 6.17 percent. A year ago, the 15-year FRM averaged 5.27 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.23 percent this week, with an average 0.5 point, up from last week when it averaged 6.22 percent. A year ago, the five-year ARM averaged 5.07 percent.
One-year Treasury-indexed ARMs averaged 5.62 percent this week, with an average 0.7 point, unchanged from last week. At this time last year, the one-year ARM averaged 4.26 percent.
"While financial markets try to decipher the spate of recently released economic reports, mortgage rates drifted slightly higher," said Frank Nothaft, Freddie Mac vice president and chief economist. "The current debate is between rising inflation and slower consumer spending. Until the market finds out which influence will be the strongest, mortgage rates should continue to fluctuate as they have the last couple weeks."
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Source: Freddie Mac