Industry News

Mortgage rates calm in weekly surveys

Revised job growth figures ease inflation risk
Published on May 10, 2007

Mortgage rates posted another week of mixed results as weak job growth helped keep a lid on inflation, Freddie Mac and Bankrate.com reported today in their weekly surveys. According to Freddie Mac, the 30-year fixed-rate mortgage dipped to an average 6.15 percent from last week's 6.16 percent and the 15-year fixed-rate mortgage held at 5.87 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.5 on the 30- and 15-year loans. Costs on adjustable-rate mortgages (ARMs) ticked higher this week, as the five-year Treasury-indexed hybrid ARM rose from 5.87 percent to 5.89 percent and the one-year ARM rate grew from 5.42 percent to 5.48 percent. Points on these loans averaged 0.6 and 0.7, respectively. "Low employment growth in April -- the slowest pace since November 2004 -- and downward revisions to both February and March job growth tempered market concerns of future increases in the rate of inflation," Frank Nothaft, Freddie Mac v...

Comments