Home Mortgage Interest Rates Move Higher

Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.21 percent with an average 0.4 point for the week ending May 16, 2007, up from last week when it averaged 6.15 percent.  Last year at this time, the 30-year FRM averaged 6.60 percent. 

The 15-year FRM this week averaged 5.92 percent with an average 0.4 point, up from last week when it averaged 5.87 percent.  A year ago, the 15-year FRM averaged 6.20 percent. 

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.92 percent this week, with an average 0.6 point, up from last week when it averaged 5.89 percent.  A year ago, the 5-year ARM averaged 6.23 percent. 

One-year Treasury-indexed ARMs averaged 5.48 percent this week with an average 0.7 point, unchanged from last week when it averaged 5.48 percent.  At this time last year, the 1-year ARM averaged 5.62 percent.  

“Mortgage rates inched up this week following the Federal Open Market Committee statement reiterating that the predominant concern remains the risk that inflation will fail to moderate as expected,” said Frank Nothaft, vice president and chief economist.  “However, as long as core inflation continues to trend downward and economic growth remains sub-par it is unlikely that we will see any big movement in mortgage rates.[tags]home mortgage rates, mortgage interest, home loans, interest rates, mortgage interest rates, real estate market, housing market[/tags] Los Angeles real estate attorneys

“Recent indicators point to continued weakness in the housing market, with the bottom of the cycle still months away.  There are signs that house sales are stabilizing and excess inventories beginning to come under control, but building permits continue to be weak and condo sales are soft in a number of markets.