Long and Short Term Mortgage Rates Reach 10 Month Highs
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 6.53 percent with an average 0.4 point for the week ending June 7, 2007, up from last week when it averaged 6.42 percent. Last year at this time, the 30-year FRM averaged 6.62 percent. The 30-year FRM has not been higher since the week ending August 10, 2006, when it averaged 6.55 percent. The 15-year FRM this week averaged 6.22 percent with an average 0.4 point, up from last week when it averaged 6.12 percent. A year ago, the 15-year FRM averaged 6.23 percent. The 15-year FRM has not been higher since the week ending August 3, 2006, when it averaged 6.27 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.24 percent this week, with an average 0.6 point, up from last week when it averaged 6.19 percent. A year ago, the 5-year ARM averaged 6.20 percent. The 5-year ARM has not been higher since the week ending August 3, 2006, when it averaged 6.27 percent. One-year Treasury-indexed ARMs averaged 5.65 percent this week with an average 0.7 point, up from last week when it averaged 5.57 percent. At this time last year, the 1-year ARM averaged 5.63 percent. The 1-year ARM has not been higher since the week ending August 10, 2006, when it averaged 5.69 percent. "Mortgage rates climbed this week owing to market concerns of a tight labor force and wage growth. May's unemployment rate remained at the second lowest level since May 2001 while average hourly earnings rose," said Frank Nothaft, Freddie Mac vice president and chief economist. "Additionally, unit labor costs increased 1.8 percent over the first three months of the year, tripling the original estimate, and fueling inflation fears." "Meanwhile, Freddie Mac released a new purchase-transaction only version of its Conventional Mortgage Home Price Index this week which showed a sharp deceleration in house-price appreciation in the first quarter of 2007. As house prices grow less quickly and household incomes rise, the housing market will likely recover from its current slump, but perhaps not before the end of this year." |
