Weak Home Sales and Lower Consumer Confidence Allow Mortgage Rates to Drift Slightly Lower
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 6.16 percent with an average 0.5 point for the week ending April 26, 2007, down slightly from last week when it averaged 6.17 percent. Last year at this time, the 30-year FRM averaged 6.58 percent. The 15-year FRM this week averaged 5.87 percent with an average 0.5 point, down slightly from last week when it averaged 5.89 percent. A year ago, the 15-year FRM averaged 6.21 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.88 percent this week, with an average 0.7 point, down from last week when it averaged 5.92 percent. A year ago, the 5-year ARM averaged 6.21 percent. One-year Treasury-indexed ARMs averaged 5.43 percent this week with an average 0.7 point, also down from last week when it averaged 5.45 percent. At this time last year, the 1-year ARM averaged 5.68 percent. "Recent economic data releases showing weaker existing home sales in March, coupled with lower consumer confidence in April, caused the market to pause and reevaluate the potential growth of the economy this year," said Frank Nothaft, Freddie Mac vice president and chief economist. "This allowed all mortgage rates to decline slightly this week." "Thus far this year, mortgage rates have remained relatively stable. Interest rates for fixed-rate mortgages varied by 20 basis points, while ARM rates stayed within a range of 15 basis points. With stable rates, new home sales in March edged up by 3 percent from February, but the sales pace in first three months of 2007 was still 14 percent below that of fourth quarter 2006." |
