Long Term Mortgage Rates Highest Since November 2006
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 6.23 percent with an average 0.4 point for the week ending January 18, 2007, up from last week when it averaged 6.21 percent. Last year at this time, the 30-year FRM averaged 6.10 percent. The 15-year FRM this week averaged 5.98 percent with an average 0.4 point, up from last week when it averaged 5.96 percent. A year ago, the 15-year FRM averaged 5.67 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.04 percent this week, with an average 0.4 point, up slightly from last week when it averaged 6.03 percent. A year ago, the five-year ARM averaged 5.75 percent. One-year Treasury-indexed ARMs averaged 5.51 percent this week with an average 0.5 point, up from last week when it averaged 5.44 percent. At this time last year, the one-year ARM averaged 5.18 percent. "Interest rates drifted slightly higher following the latest positive economic reports," said Frank Nothaft, Freddie Mac vice president and chief economist. "Shoppers bustling through the holiday season boosted December’s retail sales above consensus expectations. In the same month, industrial production reversed a three-month decline and rose faster than had been anticipated." "Expected inflation also contributes to interest-rate movements. In the coming year, we expect inflation on average to remain moderate at 2.5 percent, barring shocks from the energy sector, but concerns over the level of core inflation will continue to cause mortgage rates to fluctuate." |
