Mortgage rates back to lowest levels in six weeks

Mortgage interest rates for both the 30-year and 15-year fixed-rate mortgages were the lowest in six weeks; initial rates on 5/1 hybrid ARMs hit an all-time low since they were added to Freddie Mac's survey in early 2005.

by Broderick Perkins
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Deadline Newsroom - At the 5 percent mark, the average interest rate on 30-year fixed-rate mortgages (FRMs), for the week ending May 6, was at it's lowest point since March 25, when it averaged 4.99 percent, according to the Freddie Mac Primary Mortgage Market Survey.

The May 6, 5 percent average rate for conforming loans came with an average 0.7 point and was down from 5.06 percent last week, but up from 4.84 percent a year ago.

The 15-year FRM this week averaged 4.36 percent with an average 0.7 point, down from last week when it averaged 4.39 percent. A year ago at this time, the 15-year FRM averaged 4.51 percent, Freddie Mac reported.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.97 percent this week, with an average 0.7 point, also down from last week when it averaged an even 4 percent. A year ago, the 5-year ARM averaged 4.90 percent.

"Treasury bond and note yields declined this week, and rates on fixed-rate mortgages and hybrid ARMs followed suit," said Frank Nothaft, Freddie Mac vice president and chief economist.

"Rates for both the 30-year and 15-year fixed-rate mortgages were the lowest in six weeks; initial rates on 5/1 hybrid ARMs hit an all-time low since they were added to the survey in the beginning of 2005," Nothaft added.

The 1-year Treasury-indexed ARM averaged 4.07 percent this week with an average 0.6 point, down from last week when it averaged 4.25 percent. At this time last year, the 1-year ARM averaged 4.78 percent.


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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

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