Freddie Mac survey: Inflation jitters push mortgage rates up this weekMortgagePress.comFreddie Mac, Primary Mortgage Market Survey, Frank Nothaft
Freddie Mac has released the results of its Primary Mortgage
Market Survey (PMMS) in which the 30-year, fixed-rate mortgage
(FRM) averaged 6.03 percent with an average 0.3 point for the week
ending April 24, 2008, up from last week when it averaged 5.88
percent. Last year at this time, the 30-year FRM averaged 6.16
percent.
The 15-year FRM this week averaged 5.62 percent with an average
0.3 point, up from last week when it averaged 5.40 percent. A year
ago at this time, the 15-year FRM averaged 5.87 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 5.68 percent this week, with an average 0.5 point,
up from last week when it averaged 5.48 percent. A year ago, the
5-year ARM averaged 5.88 percent.
One-year Treasury-indexed ARMs averaged 5.29 percent this week
with an average 0.5 point, up from last week when it was 5.10
percent. At this time last year, the 1-year ARM averaged 5.43
percent. Average commitment rates should be reported along with
average fees and points to reflect the total cost of obtaining the
mortgage.
"Average rates on mortgages increased across the board this last
week as the most recent economic data raised inflationary concerns
in the capital markets," said Frank Nothaft, Freddie Mac vice
president and chief economist. "For example, the Producer Price
Index--a measure of wholesale inflation--increased 1.1 percent in
March, nearly double the consensus expectations.
"March's index of leading indicators showed a tepid increase of
0.1 percent, after five consecutive months of decline. As a result,
trading of federal funds futures contracts implied a reduced
likelihood of a substantial rate cut at the next Federal Open
Market Committee meeting."
For more information, visit www.freddiemac.com.
