Most Mortgage Rates Ease For The First Time In Five Weeks
February 24, 2006
Five-Year ARM Ticks Up One Basis Point
McLean, VA – Freddie Mac (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM) found that the 30-year fixed-rate mortgage (FRM) averaged 6.26 percent, with an average 0.6 point, for the week ending February 23, 2006, down from last week’s average of 6.28 percent. Last year at this time, the 30-year FRM averaged 5.69 percent.
The average for the 15-year FRM this week is 5.89 percent, with an average 0.6 point, down from last week’s average of 5.91 percent. A year ago, the 15-year FRM averaged 5.22 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.96 percent this week, with an average 0.6 point, up slightly from last week when it averaged 5.95 percent. A year ago, the five-year ARM averaged 5.05 percent.
One-year Treasury-indexed ARMs averaged 5.32 percent this week, with an average 0.7 point, down from last week when it averaged 5.36 percent. At this time last year, the one-year ARM averaged 4.16 percent.
“Tame core inflation figures and market confidence that the Fed will continue to keep inflation low kept mortgage rates in check this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Over the long term, we expect mortgage rates will bounce back and forth a bit, remaining near current levels.
“Based on applications for home purchases in November and December, we also expect that home sales will slow to a more traditional pace in January and February.”
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Source: Freddie Mac