Mortgage Interest Rate Survey - June 1, 2007
June 1st, 2007
In this week’s Mortgage Interest Rate Survey, according to Freddie Mac
rates jumped another 5 basis points or .5/100%. “The interest rates on fixed-rate mortgages increased further following stronger growth in orders for durable goods,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Recent reports have indicated that economic growth outside of the housing market remains robust, with a healthy consumer sector and improving business spending.”
Freddie Mac released its May 31st, 2007 weekly results of the Primary Mortgage Market Survey® (PMMS®), with interest rates for the following programs:
* 30-year fixed-rate mortgage (FRM) averaged 6.42 percent with an average 0.4 point for the week ending May 31, 2007, up from last week when it averaged 6.37 percent. Last year at this time, the 30-year FRM averaged 6.67 percent.
* The 15-year FRM this week averaged 6.12 percent with an average 0.4 point, up from last week when it averaged 6.06 percent. A year ago, the 15-year FRM averaged 6.26 percent.
* Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.19 percent this week, with an average 0.5 point, up from last week when it averaged 6.02 percent. A year ago, the 5-year ARM averaged 6.26 percent.
* One-year Treasury-indexed ARMs actually fell from 5.64 percent to 5.57 percent this week with an average 0.6 point. At this time last year, the 1-year ARM averaged 5.68 percent.
There was a truckload of economic data this morning, and it was overwhelmingly positive on the economy. “The rate rise resumed today on news that May payrolls exceeded already-strong expectations, up by 157,000 jobs, unemployment still a dead-low 4.5%; and the purchasing managers’ index of manufacturing continued its recovery, up to 55 from near stall only sixty days ago,” says Lou Barnes of Boulder West Mortgage Credit News in his weekly commentary on the mortgage market.
“April’s total home sales (including condominiums and co-ops) were below the pace of last year, and the S&P/Case-Shiller® 20-market composite index shows home values off by 1.4 percent over the year ending March.” Says Lou Barnes, the OFHEO House Price Index (the best of the bunch, worth study at OFHEO) had a .5% gain in prices from the 4th quarter ’06 to the 1st of ’07, and a 4.5% increase year-over-year. Across these two studies, “flat” is the statistically significant word for prices.”
Related Links:
What to know before you buy - Good Info for First Time Buyers and Buyers relocating to Boca Raton
Mortgage Interest Rate Survey, May 25, 2007 - Comparison to Prior Week’s Survey
Even in a Home Buyers Market its important to use your clout wisely
Source: Freddie Mac, Boulder West Mortgage Credit News
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