Long Term Rates Drop Again This Week

[Adam in CO]

Long Term Rates Drop Again This Week


McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market SurveySM (PMMSSM) in which the 30-year fixed-rate mortgage (FRM) averaged 6.55 percent, with an average 0.4 point, for the week ending August 10, 2006, down from last week's average of 6.63 percent. Last year at this time, the 30-year FRM averaged 5.89 percent.
The average for the 15-year FRM this week is 6.20 percent, with an average 0.4 point, down from last week's average of 6.27 percent. A year ago, the 15-year FRM averaged 5.47 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.21 percent this week, with an average 0.4 point, down from last week when it averaged 6.27 percent. A year ago, the five-year ARM averaged 5.40 percent.
One-year Treasury-indexed ARMs averaged 5.69 percent this week, with an average 0.8 point, unchanged from last week when it averaged 5.69 percent. At this time last year, the one-year ARM averaged 4.57 percent.
"The weaker than expected jobs report combined with the Fed's decision to pass on raising rates at its last meeting led directly to lower rates this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Interest rates for fixed-rate mortgages have dropped to levels last seen in the spring of this year." "Lower rates may bring about a rise in refinancing activity as homeowners with ARMs getting ready to reset decide to take advantage by locking into a fixed-rate mortgage now rather than waiting until the adjustment date when rates may be higher."