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Little Change In The Mortgage Rates

Posted Thursday, May 1, 2008

Today Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.06 percent with an average 0.5 point for the week ending May 1, 2008, up from last week when it averaged 6.03 percent. Last year at this time, the 30-year FRM averaged 6.16 percent.

The 15-year FRM this week averaged 5.59 percent with an average 0.5 point, down from last week when it averaged 5.62 percent. A year ago at this time, the 15-year FRM averaged 5.87 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.73 percent this week, with an average 0.5 point, up from last week when it averaged 5.68 percent. A year ago, the 5-year ARM averaged 5.87 percent.

One-year Treasury-indexed ARMs averaged 5.29 percent this week with an average 0.6 point, unchanged from last week when it was 5.29 percent. At this time last year, the 1-year ARM averaged 5.42 percent.

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

"This week saw little change in mortgage rates on mixed news of higher inflation and a weaker housing market," said Frank Nothaft, Freddie Mac vice president and chief economist.

"Additionally, in its most recent policy committee statement on April 30, the Federal Reserve (Fed) indicated it expects inflation to moderate in coming quarters but uncertainty about the outlook for inflation remains high. However, the Fed did note that financial markets remain under considerable stress and tight credit conditions, along with the deepening housing contraction, are likely to weigh on economic growth."