Positive Economic News Pushes Mortgage Rates Higher
|February 1, 2007|
30-Year Fixed Rate Mortgage Rate Highest In Almost Four Months
McLean, VA – Results of Freddie Mac Primary Mortgage Market Survey® (PMMSSM) found that the 30-year fixed-rate mortgage (FRM) averaged 6.34 percent with an average 0.4 point for the week ending February 1, 2007, up from last week when it averaged 6.25 percent. Last year at this time, the 30-year FRM averaged 6.23 percent. The 30-year FRM has not been higher since the week ending October 26, 2006, when it was 6.40 percent.
The 15-year FRM this week averaged 6.06 percent with an average 0.4 point, up from last week when it averaged 5.98 percent. A year ago, the 15-year FRM averaged 5.81 percent. The 15-year FRM has not been higher since the week ending October 26, 2006 when it averaged 6.10 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.04 percent this week, with an average 0.6 point, up from last week when it averaged 6.00 percent. A year ago, the 5-year ARM averaged 5.87 percent.
One-year Treasury-indexed ARMs averaged 5.54 percent this week with an average 0.7 point, up from last week when it averaged 5.49 percent. At this time last year, the 1-year ARM averaged 5.33 percent. The 1-year ARM has not been higher since November 9, 2006, when it averaged 5.55 percent.
"Interest rates moved higher following the latest upbeat economic news," said Frank Nothaft, Freddie Mac vice president and chief economist. "The strong 3.5 percent annualized growth in the economy over the final quarter of 2006 occurred while inflation moderated. Solid economic growth and tepid inflation contributed to the Fed's decision to leave the target short-term interest rate unchanged.
"The Fed indicated in its statement that there are some tentative signs of stabilization that have appeared in the housing market. December's existing and new home sales confirmed that 2006 was a year of significant decline in housing activities, but 2006 was still in the top three years for total home sales."
Source: Freddie Mac