Mortgage Rates Hold Steady

Freddie Mac (FRE) said Thursday that mortgage rates remained largely unchanged last week, with the benchmark 30-year fixed-rate mortgage averaging 5.88 percent with an average 0.4 point for the week ended April 10. The average rate was unchanged from one week ago, the GSE said, and was 40 basis points lower than last year at this time. The 15-year FRM this week averaged 5.42 percent with an average 0.4 point, also unchanged from last week when it averaged 5.42 percent, Freddie Mac said. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.56 percent this week, with an average 0.6 point, down from last week’s average of 5.59 percent. Two weeks’ worth of a break from what had been a whipsaw ride for mortgage rates during most of the first quarter was a welcome one for most primary market participants. “Once again, mortgage rates held relatively steady this week amid release of subdued economic data,” said Frank Nothaft, Freddie Mac vice president and chief economist. “For example, pending existing home sales hit the lowest value since its introduction in January 2001, presaging additional weakness in single-family home sales over the upcoming months. Further, the economy lost 80,000 jobs in March, more than the market had anticipated, and the prior two months were revised downward as well. “Meanwhile, house sales prices have fallen in most metropolitan areas, although there have been price gains in some areas. Just over half of the 150 large cities across the nation experienced negative annual house price growth in 2007, according the National Association of Realtors. The largest yearly drop of 18.8 percent occurred in Lansing, MI, while Cumberland, MD, experienced the strongest growth at 19.0 percent.” For more information, visit http://www.freddiemac.com.