Slow Housing Market Sees Mortgage Rates Drift Downward
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 6.22 percent with an average 0.5 point for the week ending February 22, 2007, down from last week when it averaged 6.30 percent. Last year at this time, the 30-year FRM averaged 6.26 percent. The 15-year FRM this week averaged 5.97 percent with an average 0.5 point, down from last week when it averaged 6.03 percent. A year ago, the 15-year FRM averaged 5.89 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.96 percent this week, with an average 0.5 point, down from last week when it averaged 6.01 percent. A year ago, the 5-year ARM averaged 5.96 percent. One-year Treasury-indexed ARMs averaged 5.49 percent this week with an average 0.7 point, down from last week when it averaged 5.52 percent. At this time last year, the 1-year ARM averaged 5.32 percent. "Mortgage rates eased a little more this week, as market participants were concerned over how much drag the slowing housing market may have on economic growth," said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, last week's release of housing starts for January showed the weakest reading since August 1997, due to the abundance of homes already on the market to purchase." "Next week's releases of new and existing home sales should offer a more complete gauge of the strength of the housing industry. In addition, the second estimate of economic growth in the fourth quarter of 2006 will be released next week and should further provide insight into what extent the housing market is affecting the economy." |
