Conflicting Information Keeps Mortgage Rates Low
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.16 percent with an average 0.4 point for the week ending March 29, 2007, unchanged from last week when it averaged 6.16 percent. Last year at this time, the 30-year FRM averaged 6.35 percent. The 15-year FRM this week averaged 5.86 percent with an average 0.4 point, down from last week when it averaged 5.90 percent. A year ago, the 15-year FRM averaged 6.00 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.88 percent this week, with an average 0.5 point, down from last week when it averaged 5.91 percent. A year ago, the 5-year ARM averaged 6.02 percent. One-year Treasury-indexed ARMs averaged 5.43 percent this week with an average 0.6 point, up from last week when it averaged 5.40 percent. At this time last year, the 1-year ARM averaged 5.51 percent. "Recent data releases sent conflicting signals about the direction of the housing market," said Frank Nothaft, Freddie Mac vice president and chief economist. "The rise in existing home sales in February to a 6.69 million unit pace, the highest level since last April, offered some hope of firming in housing demand. In contrast, February’s new home sales fell unexpectedly to 848,000 units, the slowest pace since June 2000, suggesting that more time will be needed before a housing recovery takes place." "Despite concerns about possible spillovers from the troubles in the subprime market, rates on 30-year fixed-rate mortgages remained stable. The ample liquidity provided by Freddie Mac in the conventional conforming mortgage market has helped keep rates down, supporting affordability and aiding in the ultimate recovery of the housing market." |
