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Interest Rates Not Changed This Week

Posted Thursday, June 5, 2008

Today Freddie Mac (NYSE) released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.09 percent with an average 0.6 point for the week ending June 5, 2008, up very slightly from last week when it averaged 6.08 percent. Last year at this time, the 30-year FRM averaged 6.53 percent.

The 15-year FRM this week averaged 5.65 percent with an average 0.6 point, down very slightly from last week when it averaged 5.66 percent. A year ago at this time, the 15-year FRM averaged 6.22 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.51 percent this week, with an average 0.5 point, down from last week when it averaged 5.62 percent. A year ago, the 5-year ARM averaged 6.24 percent.

One-year Treasury-indexed ARMs averaged 5.06 percent this week with an average 0.7 point, down from last week when it was 5.22 percent. At this time last year, the 1-year ARM averaged 5.65 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"Interest rates for fixed-rate mortgages were nearly unchanged this week over reports of continued inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "Although the gross domestic product grew at a faster rate in the first quarter than originally reported, consumer spending rose only 1 percent, representing the smallest increase since the 2001 recession.

"In addition, the core price deflator was revised downward to an annualized rate of 2.1 percent and remained at that pace in April, but this is still above the Federal Reserve's stated comfort zone."