09/28/2007
According to Freddie Mac’s weekly survey released this morning, the average 30 year fixed-rate mortgage was 6.42%, up from 6.34% last week.
A year ago the average 30-year fixed rate was slightly lower, weighing in at 6.31%.
“Consistent with the direction of 10-year Treasury securities, average rates on 30-year fixed-rate mortgages drifted up in the past week to levels close to those at the beginning of the month,” said Frank Nothaft, Freddie Mac chief economist.
The 15 year fixed-rate mortgage also rose, averaging 6.09%, up from 5.98% a week ago.
Conversely, adjustable-rate mortgages saw a weekly decline, with the five-year ARM averaging 6.15%, down from a week ago level of 6.21%.
The one-year ARM also dipped from 5.65% to 5.60% this week.
A year ago, 15-year mortgages averaged 5.98%, the one-year ARM averaged 5.47%, and the five-year ARM averaged 6.00 percent.
Though adjustable-rate mortgages continue to fall, most mortgage applicants are more interested in fixed-rate mortgages.
“Though it is the fourth consecutive week rates on ARMs have declined, the share of mortgage applications for ARMs has been trending down, and last week reached its lowest level since March 2003, according to the Mortgage Bankers Association,” Nothaft said.
Adjustable-rate mortgages continue to fall out of fashion, with the loans making up a mere 12.2% of all applications, down from 12.6% the previous week.
Most homeowners nowadays are looking for security, and that figures to come with a fixed rate, as the fear of resetting interest rates seems to be enough to discourage the majority of homeowners from going after ARMs.
