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Mortgage Rates Near Six-Month Low

But many consumers may have trouble qualifying

November 2, 2007     Spanish

According to Freddie Mac’s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage averaged 6.26 percent with an average 0.4 point for the week ending November 1, 2007. The week before the rate stood at 6.33 percent and last year at this time, the 30-year FRM averaged 6.31 percent.

The 30-year loan rate has not been this low since the week ending May 17, 2007, when it averaged 6.21 percent.

“October’s consumer confidence fell to its lowest level since October 2005 as mortgage rates continued to decline this week to their lowest level in almost six months,” said Frank Nothaft, Freddie Mac vice president and chief economist.

“Continued market concerns about weaker economic growth and further declines in the housing market have kept mortgage rates low over the last few weeks."

The low rates don't necessarily help home buyers and sellers, however. Lenders have tightened their standards in the wake of the subprime debacle and many consumers may find they have trouble qualifying for a mortgage.

The 15-year FRM averaged 5.91 percent this week with an average 0.4 point, compared to the average of 5.99 percent last week. A year ago, the 15-year FRM averaged 6.02 percent.

The 15-year FRM has not been this low since the week ending May 10, 2007, when it averaged 5.87 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.98 percent this week, with an average 0.4 point, down from last week when it averaged 6.03 percent. A year ago, the 5-year ARM averaged 6.05 percent.

The 5-year ARM is at its lowest level since the week ending May 17, 2007, when it averaged 5.92 percent.

One-year Treasury-indexed ARMs averaged 5.57 percent this week with an average 0.6 point, down from last week when it averaged 5.66 percent. At this time last year, the 1-year ARM averaged 5.53 percent.

The 1-year ARM has not been this low since the week ending May 31, 2007, when it averaged 5.57 percent.

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