Estate and mortgage

Mortgage Rates Move Little in Freddie Mac"s Weekly Survey

The 15-year FRM this week averaged 5.25 percent with an average 0.4 point, up from last week when it averaged 5.15 percent. A year ago at this time, the 15-year FRM averaged 6.03 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.19 percent this week, with an average 0.4 point, down from last week when it averaged 5.21 percent. A year ago, the 5-year ARM averaged 6.01 percent. One-year Treasury-indexed ARMs averaged 5.03 percent this week with an average 0.4 point, down from last week when it was 5.03 percent. At this time last year, the 1-year ARM averaged 5.52 percent "This week was relatively light on the number of economic data releases, which painted a mixed picture regarding the current state of the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "On a positive note, labor productivity rose higher than market forecasts in the fourth quarter of 2007 while gains in labor costs slowed. However, pending existing home sales fell for the second month in December, indicating further weakness in home sales for January and February. As a result, mortgage rates were roughly unchanged this week." "These historically low mortgage rates and declining house prices contributed to the highest housing affordability in December since March 2005, according to the National Association of Realtors®. However, with banks continuing to tighten lending standards, fewer families will likely have an opportunity to take advantage of these factors."


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