Industry News

Mortgage rates tame in weekly surveys

Markets eagerly await labor report, Fed meeting

Mortgage rates posted mixed results this week as lackluster economic growth and housing kept borrowing costs within a predictable range, Freddie Mac and 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...