Moderating Economic Growth Helps Take Pressure Off Mortgage Rates According To Freddie Mac Weekly Survey
July 28, 2006
Short-Term Rates Less Affected
McLean, VA – According to Freddie Mac Primary Mortgage Market SurveySM (PMMSSM) the 30-year fixed-rate mortgage (FRM) averaged 6.72 percent, with an average 0.3 point, for the week ending July 27, 2006, down from last week's average of 6.80 percent. Last year at this time, the 30-year FRM averaged 5.77 percent.
The average for the 15-year FRM this week is 6.34 percent, with an average 0.4 point, down from last week's average of 6.41 percent. A year ago, the 15-year FRM averaged 5.34 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.35 percent this week, with an average 0.4 point, down from last week when it averaged 6.36 percent. A year ago, the five-year ARM averaged 5.27 percent.
One-year Treasury-indexed ARMs averaged 5.78 percent this week, with an average 0.7 point, down from last week when it averaged 5.80 percent. At this time last year, the one-year ARM averaged 4.46 percent.
"Mortgage rates drifted lower this week on indications that economic growth is moderating, inflation remains under control and the Fed just may pause raising rates for awhile," said Frank Nothaft, Freddie Mac vice president and chief economist. "Meanwhile, recently released new homes sales for June fell to a lower than expected rate. That drop can be traced directly to higher mortgage rates, which are also helping to slow the growth of house prices in 2006."
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Source: Freddie Mac