July Round Up: Rates Tick Down
In Freddie Mac’s results of its Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.69 percent with an average 0.4 point for the week ending July 26, 2007, down from the previous week when it averaged 6.73. Last year at this time, the 30-year FRM averaged 6.72 percent.
The 15-year FRM averaged 6.37 percent with an average 0.4 point, down slightly from the previous week when it averaged 6.38 percent. A year ago, the 15-year FRM averaged 6.34 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.30 percent, with an average 0.4 point, down from the previous week when it averaged 6.35 percent. A year ago, the 5-year ARM averaged 6.35 percent.
‘Mortgage rates eased this week on market concerns that a further weakening of housing demand this spring will delay any recovery in the sector,’ said Frank Nothaft, Freddie Mac vice president and chief economist. ‘For example, building permits fell last month to the slowest pace in a decade, and more recent data on June sales of existing home showed a fourth consecutive monthly decline.’
‘Several factors contributed to the softening in housing markets this spring. In addition to the tightening of lending standards earlier this year, especially on subprime loans, the 40 basis point jump in rates on 30-year fixed-rate mortgages in June may have deterred potential buyers. For the year-to-date, sales of single-family homes were down about 9 percent from the first half of 2007.’
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