Mortgage Rates Reverse Downward Trend this Week
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 6.73 percent with an average 0.4 point for the week ending July 12, 2007, up from last week when it averaged 6.63 percent. Last year at this time, the 30-year FRM averaged 6.74 percent. The 15-year FRM this week averaged 6.39 percent with an average 0.4 point, up from last week when it averaged 6.30 percent. A year ago, the 15-year FRM averaged 6.37 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.35 percent this week, with an average 0.5 point, up from last week when it averaged 6.29 percent. A year ago, the 5-year ARM averaged 6.33 percent. One-year Treasury-indexed ARMs averaged 5.71 percent this week with an average 0.5 point, unchanged from last week. At this time last year, the 1-year ARM averaged 5.75 percent. "A favorable employment report for June and robust consumer credit growth for May pushed long-term mortgage rates higher in the past week, nearly eliminating the declines made in rates over the previous three weeks," said Frank Nothaft, Freddie Mac vice president and chief economist. "In addition, consumer credit jumped by $12.9 billion in May, almost double market expectations." "Our July economic outlook forecasts 30-year fixed-rates to stay around their current level through the end of year. The refinance share of loan applications is expected to continue decreasing throughout the same time frame, averaging about 35 percent in 2007, the lowest level since 2000. Freddie Mac expects weakness in the housing market to persist in the second half of the year, with 2007 total home sales and housing starts hitting 5-year lows." |
