Mortgage Rates Continue Upward Trend According To Freddie Mac’s Weekly Survey
April 14, 2006
Long-Term Mortgage Rates Highest In Nearly Four Years
McLean, VA – Freddie Mac (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM) found the 30-year fixed-rate mortgage (FRM) averaged 6.49 percent, with an average 0.6 point, for the week ending April 13, 2006, up from last week’s average of 6.43 percent. Last year at this time, the 30-year FRM averaged 5.91 percent. The 30-year FRM has not been higher since the week ending July 12, 2002, when it averaged 6.54 percent.
The average for the 15-year FRM this week is 6.14 percent, with an average 0.5 point, up from last week’s average of 6.10 percent. A year ago, the 15-year FRM averaged 5.46 percent. The 15-year FRM has not been higher since the week ending June 13, 2002, when it averaged 6.17 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.13 percent this week, with an average 0.7 point, up from last week when it averaged 6.11 percent. A year ago, the five-year ARM averaged 5.31 percent.
One-year Treasury-indexed ARMs averaged 5.61 percent this week, with an average 0.8 point, up from last week when it averaged 5.57 percent. At this time last year, the one-year ARM averaged 4.30 percent.
“Mortgage rates continued to creep up following the unexpected drop in March’s unemployment rate. That drop indicated there may be some upward pressure on wages in the near future, which could lead to a rise in inflation,” said Frank Nothaft, Freddie Mac vice president and chief economist. “And the threat of a higher rate of inflation, as we all know, invariably leads to higher mortgage rates.
“With that said, Freddie Mac’s outlook for 30-year mortgage rates for 2006 continues to expect that rates will fluctuate somewhere between 6.25 percent 6.75 percent over the course of the year.”
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Source: Freddie Mac