Fixed Rates Unchanged Adjustable Rates Slightly Lower Tuesday, September 11, 2007

McLEAN, VA - Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.46 percent with an average 0.5 point for the week ending September 6, 2007, up from last week when it averaged 6.45 percent. Last year at this time, the 30-year FRM averaged 6.47 percent. The 15-year FRM this week averaged 6.15 percent with an average 0.5 point, up from last week when it averaged 6.12 percent. A year ago, the 15-year FRM averaged 6.16 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.32 percent this week, with an average 0.6 point, down from last week when it averaged 6.35 percent. A year ago, the 5-year ARM averaged 6.14 percent. One-year Treasury-indexed ARMs averaged 5.74 percent this week with an average 0.6 point, down from last week when it averaged 5.84 percent. At this time last year, the 1-year ARM averaged 5.63 percent. “Over the past week, long-term mortgage rates were largely unchanged as the most recent economic news showed smaller increases than had been expected,” said Frank Nothaft, Freddie Mac vice president and chief economist. “For instance, core personal consumption expenditure price index rose at an annualized rate of only 1.3 percent in the second quarter and July’s consumer spending data showed a 1.9 percent gain in the core price index for the twelve months ending in July. “In other news, the most recent Conventional Mortgage Home Price Index (CMHPI) release issued by Freddie Mac reported that on average, national house prices grew by 0.1 percent in the second quarter, the slowest quarterly house price growth since the fourth quarter of 1994. For the past 12 months, house prices appreciated 3.3 percent, the slowest rate in 10 years.”