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Slight Changes In Mortgage Rates This Week
Friday, April 11, 2008
Today Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.88 percent with an average 0.4 point for the week ending April 10, 2008, unchanged from last week when it averaged 5.88 percent. Last year at this time, the 30-year FRM averaged 6.22 percent.
The 15-year FRM this week averaged 5.42 percent with an average 0.4 point, unchanged from last week when it averaged 5.42 percent. A year ago at this time, the 15-year FRM averaged 5.90 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.56 percent this week, with an average 0.6 point, down from last week when it averaged 5.59 percent. A year ago, the 5-year ARM averaged 5.93 percent.
One-year Treasury-indexed ARMs averaged 5.18 percent this week with an average 0.7 point, down from last week when it was 5.19 percent. At this time last year, the 1-year ARM averaged 5.47 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Once again, mortgage rates held relatively steady this week amid release of subdued economic data," said Frank Nothaft, Freddie Mac vice president and chief economist. "For example, pending existing home sales hit the lowest value since its introduction in January 2001, presaging additional weakness in single-family home sales over the upcoming months. Further, the economy lost 80,000 jobs in March, more than the market had anticipated, and the prior two months were revised downward as well.
"Meanwhile, house sales prices have fallen in most metropolitan areas, although there have been price gains in some areas. Just over half of the 150 large cities across the nation experienced negative annual house price growth in 2007, according the National Association of Realtors. The largest yearly drop of 18.8 percent occurred in Lansing, MI, while Cumberland, MD, experienced the strongest growth at 19.0 percent."