McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.18 percent with an average 0.4 point for the week ending December 28, 2006, up from last week when it averaged 6.13 percent. Last year at this time, the 30-year FRM averaged 6.22 percent.
The 15-year FRM this week averaged 5.93 percent with an average 0.4 point, up from last week when it averaged 5.89 percent. A year ago, the 15-year FRM averaged 5.76 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.98 percent this week, with an average 0.5 point, up from last week when it averaged 5.96 percent. A year ago, the five-year ARM averaged 5.79 percent.
One-year Treasury-indexed ARMs averaged 5.47 percent this week with an average 0.6 point, up from last week when it averaged 5.44 percent. At this time last year, the one-year ARM averaged 5.15 percent.
"Mortgage rates edged up over the week following news of a jump in consumer spending in November,” said Frank Nothaft, Freddie Mac vice president and chief economist. "Financial markets were concerned that stronger spending could keep inflation elevated. These worries were further compounded by the releases of new and existing home sales for the same month, which both exceeded market forecasts and caused Treasury bond yields to continue to rise. On a positive note, both new and existing home inventories in November fell from recent highs suggesting the excess supply of homes on the market may be normalizing towards historical trends."
"The lower mortgage rates in November and early December are giving the housing market a bit of relief at year's end, but we expect to see continued volatility in housing market data even if mortgage rates stabilize, due to uncertain weather patterns that can impact the underlying figures one way or the other.”
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