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Mortgage Rates Up Again
Thursday, June 19, 2008
Today Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.42 percent with an average 0.7 point for the week ending June 19, 2008, up from last week when it averaged 6.32 percent. Last year at this time, the 30-year FRM averaged 6.69 percent. The last time the 30-year FRM was this high was the week ending September 27, 2007, when it averaged 6.42 percent.
The 15-year FRM this week averaged 6.02 percent with an average 0.7 point, up from last week when it averaged 5.93 percent. A year ago at this time, the 15-year FRM averaged 6.37 percent. The last time the 15-year FRM was higher was the week ending October 18, 2007, when it averaged 6.08 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.89 percent this week, with an average 0.6 point, up from last week when it averaged 5.70 percent. A year ago, the 5-year ARM averaged 6.31 percent. This is the highest the 5-year ARM has been since the week ending December 27, 2007, when it averaged 5.90 percent.
One-year Treasury-indexed ARMs averaged 5.19 percent this week with an average 0.6 point, up from last week when it was 5.09 percent. At this time last year, the 1-year ARM averaged 5.66 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Fixed-rate mortgage rates continued to climb this week to the highest point in nearly nine months following the release of May's consumer and producer price indexes, both of which showed stronger levels of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "Additionally, consumer prices rose 0.6 percent last month, the most since November 2007, and traders began to fully price in a Federal Reserve rate hike by the end of September, based on the federal funds futures market.
"Meanwhile, the housing market still struggles. New construction of single family (1-unit) homes fell in May to the weakest pace since January 1991 and April's starts had a downward revision."