Mortgage Rates Decline For Second Week
by: Martin Lukac
Mortgage interest rates fell for the second week in a row, according to Freddie Mac's weekly survey.
The 30-year, fixed-rate mortgage averaged 6.63% for the week ending August 2, down from 6.72% the week prior. One year ago, the 30-year mortgage averaged 5.82%.
The 15-year, fixed-rate mortgage averaged 6.27%, down from 6.34%. One year ago, the 15-year averaged 5.38%.
Five-year hybrid adjustable-rate mortgages were also down, settling at 6.27%, down from 6.35% the week prior. The hybrid averaged 5.30% one year ago.
One-year ARMs decreased to 5.69% from 5.78% the week prior. One year ago, the ARM averaged 4.47%.
"Second-quarter gross domestic product came in weaker than the market had expected," said Frank Nothaft, chief economist for Freddie Mac. "This means inflation is less of a threat, and that translates into lower mortgage rates."
However, the decreases in rate may not be a new trend for the market.
"Although lower rates are a welcome sight, we still feel that the 30-year, fixed-rate mortgage will drift up and down somewhat over the next few months, but will average less than 7% for the year," explained Nothaft.
The 30-year and 15-year fixed mortgages required an average fee of 0.3 point. The 5-year hybrid required an average of 0.4 point, while the 1-year ARM averaged 0.7 point.
About The Author:
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
August 2006
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