Long Term Rates Little Changed This Week: ARMs up in Anticipation of Fed Actions article - CA mortgages : CA mortgage rates and home loans

Long Term Rates Little Changed This Week: ARMs up in Anticipation of Fed Actions

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.45 percent with an average 0.6 point for the week ending June 26, 2008, up from last week when it averaged 6.42 percent. Last year at this time, the 30-year FRM averaged 6.67 percent. The last time the 30-year FRM was higher was the week ending August 23, 2007, when it averaged 6.52 percent.

The 15-year FRM this week averaged 6.04 percent with an average 0.6 point, up from last week when it averaged 6.02 percent. A year ago at this time, the 15-year FRM averaged 6.34 percent. The last time the 15-year FRM was higher was the week ending October 18, 2007, when it averaged 6.08 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.99 percent this week, with an average 0.7 point, up from last week when it averaged 5.89 percent. A year ago, the 5-year ARM averaged 6.30 percent. This is the highest the 5-year ARM has been since the week ending October 25, 2007, when it averaged 6.03 percent.

One-year Treasury-indexed ARMs averaged 5.27 percent this week with an average 0.6 point, up from last week when it was 5.19 percent. At this time last year, the 1-year ARM averaged 5.65 percent. The last time the one-year ARM was higher was the week ending May 8, 2008, when it averaged 5.29 percent.

"Fixed-rate mortgage rates held relatively stable this week leading up to the June 24-25 Federal Reserve (Fed) Policy Committee meeting," said Frank Nothaft, Freddie Mac vice president and chief economist. "ARM rates, which are typically tied to short-term instruments, rose slightly due to market uncertainty over how the Fed might respond."

"This week's release of the April S&P-Case Shiller® house price indexes offered a few surprises. The decline in the 20-city composite index was less than that in March and eight cities had positive monthly growth in April – compared to only two cities in March. In addition, May's new home median sales price increased from the prior month, according the Commerce Department. It should be noted, however, that seasonality may have played a factor in these results."

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