Employment News Help Rates Edge Down
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 6.28 percent with an average 0.3 point for the week ending February 8, 2007, down from last week when it averaged 6.34 percent. Last year at this time, the 30-year FRM averaged 6.24 percent. The 15-year FRM this week averaged 6.02 percent with an average 0.3 point, down from last week when it averaged 6.06 percent. A year ago, the 15-year FRM averaged 5.83 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.99 percent this week, with an average 0.4 point, down from last week when it averaged 6.04 percent. A year ago, the 5-year ARM averaged 5.89 percent. One-year Treasury-indexed ARMs averaged 5.49 percent this week with an average 0.7 point, down from last week when it averaged 5.54 percent. At this time last year, the 1-year ARM averaged 5.34 percent. "News of moderate employment gains in January led to a halt in the recent upward trend of interest rate movements," said Frank Nothaft, Freddie Mac vice president and chief economist. "The 111,000 jobs added last month were fewer than had been anticipated, while the unemployment rate edged up unexpectedly." "Throughout the year we expect rates on 30-year mortgages to average between 6.3 and 6.5 percent. The flat or increasing rate environment will likely cause the refinance share to contract gradually. In addition, the dollar volume of home equity cashed-out will also retreat from the record level of $314 billion set in 2006 to around $230 billion this year." | 
