Industry News

Mortgage rates tame in weekly surveys

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Mortgage rates posted mixed results this week as lackluster economic growth and housing kept borrowing costs within a predictable range, Freddie Mac and Bankrate.com reported today in their surveys. Freddie Mac reported the average rates on both the 30- and 15-year fixed mortgages were unchanged this week, holding at 6.16 percent and 5.87 percent, respectively. 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. Adjustable-rate mortgages (ARMs) become slightly more affordable, as the five-year Treasury-indexed hybrid ARM dipped from 5.88 percent to 5.87 percent and the one-year ARM sank from 5.43 percent to 5.42 percent. Points on these loans averaged 0.6 and 0.7, respectively. "The recently advanced report of first-quarter Gross Domestic Product (GDP) was weaker than expected, growing only 1.3 percent. The housing market alone shaved a full percentage point off real GDP growth," Frank Nothaft, Freddie...