Mortgage Rates Stay Steady
Housing agency economist attributes limited change to 'better-than-expected economic data.'
May 8, 2008
The 30-year fixed mortgage rate in Freddie Mac's weekly survey slipped just one basis point to 6.05% this week, while the 15-year fixed rate rose one basis point to 5.60%.
On the adjustable-rate side, the five-year hybrid ARM rates averaged 5.67%, down six basis points from the previous week's average, and one-year ARM rates were unchanged at 5.29% for the third straight week.
Freddie chief economist Frank Nothaft attributed the limited change in mortgages to "better-than-expected economic data releases that indicated the economy still has some staying power."
With rates holding steady, application activity is expected to hold around current levels. Yesterday, the Mortgage Bankers Association reported a 19% increase in its Refinance Index to 2274 for the week ending May 2. The Purchase Index rose 12% to 381.
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