Financial Markets Wary of Housing Market's Drag on Economic Growth
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 6.69 percent with an average 0.5 point for the week ending June 21, 2007, down from last week when it averaged 6.74 percent. Last year at this time, the 30-year FRM averaged 6.71 percent. The 15-year FRM this week averaged 6.37 percent with an average 05 point, down from last week when it averaged 6.43 percent. A year ago, the 15-year FRM averaged 6.36 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.31 percent this week, with an average 0.6 point, down from last week when it averaged 6.37 percent. A year ago, the 5-year ARM averaged 6.32 percent. One-year Treasury-indexed ARMs averaged 5.66 percent this week with an average 0.7 point, down from last week when it averaged 5.75 percent. At this time last year, the 1-year ARM averaged 5.75 percent. "Mortgage rates eased this week due to market concerns that the housing market will be a longer drag on the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "May's housing starts fell for the first time in four months, while homebuilder optimism in June fell to a sixteen-year low." "Thus far this year, the housing sector directly shaved 0.8 percentage points off real economic growth in the first quarter, compared to the 1.2 percentage points it lopped off growth in the second half of 2006." |
