Long-Term Mortgage Rates Highest In Nearly Four Years
|
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results
of its Primary Mortgage Market SurveySM (PMMSSM) in which 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."
