Complain about a product or service

Most Mortgage Rates Drift Lower

Hopes of a recovery send rates down slightly

May 16, 2008

The 30-year fixed-rate mortgage (FRM) averaged 6.01 percent with an average 0.6 point for the week ending May 15, 2008, compared with 6.05 percent last week, according to the Freddie Mac Primary Mortgage Market Survey. Last year at this time, the 30-year FRM averaged 6.15 percent.

The average for the 15-year fixed-rate loan was unchanged from last week at 5.60 percent with an average 0.5 point. A year ago, it averaged 5.87 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.57 percent this week, with an average 0.6 point, down 10 basis points from last week. The 5-year ARM averaged 5.89 percent a year ago.

One-year Treasury-indexed ARMs averaged 5.18 percent this week with an average 0.7 point, compared with last week’s average of 5.29 percent. At this time last year, the 1-year ARM averaged 5.48 percent.

“Recent remarks by Federal Reserve (Fed) officials, which partly bolstered optimism that financial markets will recover later this year, helped mortgage rates ease up a little this week,” said Frank Nothaft, Freddie Mac vice president and chief economist.

Fed Chairman Ben Bernanke indicated in a speech on May 13th that the central bank stands ready to continue to add liquidity to the markets. On the same day, San Francisco Fed bank president Janet Yellen added that she anticipates inflation will slow as commodity prices level off in the second half of the year.

Despite the bleak housing market, there was positive news on the overall state of the economy. Retail sales (excluding automobiles) rose 0.5 percent in April, over twice that of market forecasts, and there was a significant upward revision in March’s figures as well. Also, the consumer price index for April rose less than expected, allaying some market concerns of inflation taking hold.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |