Mixed economic indicators caused some fluctuations in mortgage rates this week. According to Freddie Mac’s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.63 percent, with an average 0.5 point, for the week ending June 15, 2006. This is up only slightly from last week’s average. Last year at this time, the 30-year FRM averaged 5.63 percent.
The average for the 15-year FRM this week is 6.25 percent, with an average 0.6 point, up slightly from last week’s average of 6.23 percent. A year ago, the 15-year FRM averaged 5.22 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.23 percent this week, with an average 0.5 point, up a little from last week when it averaged 6.20 percent. A year ago, the five-year ARM averaged 5.10 percent.
One-year Treasury-indexed ARMs averaged 5.66 percent this week, with an average 0.6 point, also up from last week when it averaged 5.63 percent. At this time last year, the one-year ARM averaged 4.25 percent.
“Mixed economic indicators are causing some volatility in financial markets. This invariably leads to the fluctuations in mortgage rates like what we have seen recently,” said Frank Nothaft, Freddie Mac chief economist. “Still, there has been no drastic movement in mortgage rates and we see nothing on the horizon that would bring about any extreme rise or fall in rates going forward. Our economic forecast still indicates strongly that, even with gradually rising rates, 2006 may well be the third strongest year on record for housing.