Weak Economic News Keeps Mortgage Rates Steady
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) in which mortgage rates for the 30-year fixed-rate mortgage (FRM) averaged 6.16 percent with an average 0.5 point for the week ending May 3, 2007, unchanged from last week when mortgage rates for the home loan program averaged 6.16 percent. Last year at this time, the 30-year FRM mortgage rate averaged 6.59 percent.
Mortgage rates for the 15-year FRM this week averaged 5.87 percent with an average 0.5 point, unchanged from last week when mortgage rates for the home loan program averaged 5.87 percent. A year ago, the 15-year FRM mortgage rate averaged 6.22 percent.
Mortgage rates for Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.87 percent this week, with an average 0.6 point, down slightly from last week when mortgage rates for the home loan program averaged 5.88 percent. A year ago, the 5-year ARM mortgage rate averaged 6.21 percent.
Mortgage rates for One-year Treasury-indexed ARMs averaged 5.42 percent this week with an average 0.7 point, also down slightly from last week when mortgage rates for the home loan program averaged 5.43 percent. At this time last year, the 1-year ARM mortgage rate averaged 5.67 percent.
"The recently advanced report of first quarter Gross Domestic Product (GDP) was weaker than expected, growing only 1.3 percent. The housing market alone shaved a full percentage point off real GDP growth," said Frank Nothaft, Freddie Mac vice president and chief economist. "Additionally, both consumer spending and price increases in consumer expenditures were quite tame in March. These contributing factors allowed mortgage rates to hold steady this week."
