Mortgage Rates Hold Near Current Levels
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 6.05 percent with an average 0.3 point for the week ending May 8, 2008, down very slightly from last week when mortgage rates for the home loan program averaged 6.06 percent. Last year at this time, the 30-year FRM mortgage rate averaged 6.21 percent.
Mortgage rates for the 15-year FRM this week averaged 5.60 percent with an average 0.3 point, up very slightly from last week when mortgage rates for the home loan program averaged 5.59 percent. A year ago at this time, the 15-year FRM mortgage rate averaged 5.92 percent.
Mortgage rates for Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.67 percent this week, with an average 0.5 point, down from last week when mortgage rates for the home loan program averaged 5.73 percent. A year ago, the 5-year ARM mortgage rate averaged 5.92 percent.
Mortgage rates for One-year Treasury-indexed ARMs averaged 5.29 percent this week with an average 0.6 point, unchanged from the last two weeks when mortgage rates for the home loan program averaged 5.29 percent. At this time last year, the 1-year ARM mortgage rate averaged 5.48 percent.
"Despite a weak housing market, mortgage rates remained almost unchanged this week based on better-than-expected economic data releases that indicated the economy still has some staying power," said Frank Nothaft, Freddie Mac vice president and chief economist. "Job losses lessened in April and conditions in both the manufacturing and service industry outperformed market forecasts. Worker productivity also rose in the first quarter as increases in labor costs diminished."
