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Mixed Mortgage Rates in Freddie Mac Survey
Friday, March 28, 2008
Freddie Mac today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.85 percent with an average 0.4 point for the week ending March 27, 2008, down from last week when it averaged 5.87 percent. Last year at this time, the 30-year FRM averaged 6.16 percent.
The 15-year FRM this week averaged 5.34 percent with an average 0.4 point, up from last week when it averaged 5.27 percent. A year ago at this time, the 15-year FRM averaged 5.86 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.67 percent this week, with an average 0.6 point, up from last week when it averaged 5.56 percent. A year ago, the 5-year ARM averaged 5.88 percent.
One-year Treasury-indexed ARMs averaged 5.24 percent this week with an average 0.5 point, up from last week when it was 5.15 percent. At this time last year, the 1-year ARM averaged 5.43 percent
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Long-term mortgage rates were mixed, but relatively unchanged in the past week as the latest economic indicators came in much as expected," said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, the index of leading indicators continued to fall for the fifth straight month while consumer confidence reached a 5-year low.
"On the housing front, house prices keep declining across the nation. The S&P/Case-Shiller Home Price Index® was the most recent to document the drop in prices, reporting a decline of 2.3 percent from December to January in its 10-City Composite Index and a cumulative decline of 11.4 percent from January a year ago. Lower prices improve affordability and the National Association of Realtors reported that its home affordability index was at the highest level in nearly five years, contributing to a pickup in existing home sales in February."