New Economic News Allows Mortgage Rates to Slip For Second 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 6.18 percent with an average 0.4 point for the week ending March 1, 2007, down from last week when it averaged 6.22 percent. Last year at this time, the 30-year FRM averaged 6.24 percent. The 15-year FRM this week averaged 5.92 percent with an average 0.5 point, down from last week when it averaged 5.97 percent. A year ago, the 15-year FRM averaged 5.89 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.93 percent this week, with an average 0.6 point, down from last week when it averaged 5.96 percent. A year ago, the 5-year ARM averaged 5.97 percent. One-year Treasury-indexed ARMs averaged 5.49 percent this week with an average 0.6 point, unchanged from last week when it also averaged 5.49 percent. At this time last year, the 1-year ARM averaged 5.34 percent. "Mortgage rates drifted lower last week largely on the basis of new economic information suggesting a slower economy and lower inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "Real GDP growth for the last quarter was revised downward to a 2.2 percent annualized rate, compared to the 3.5 percent initially estimated, while the accompanying price measure showed that core inflation was tamer than first reported, at a revised 1.9 percent annualized rate." "Home sales painted a mixed picture of January’s activity. Continued weakness in the housing market was evidenced in January’s new home sales, which fell by 17 percent from the previous month. Meanwhile, existing home sales rose unexpectedly in the same time period. While the overall trend is unclear, the housing market is likely to continue on its rocky path during the first half of 2007." |
