By Amy Hoak
Interest rates on both fixed-rate and adjustable-rate mortgages
rose this week, according to Freddie Mac's (FRE) weekly rate survey
released on Thursday.
"Mortgage rates followed bond yields higher this week following
reports of record continuing jobless claims and a downward revision
in economic growth in the fourth quarter of 2008," said Frank
Nothaft, Freddie Mac chief economist, in a news release. "Real
gross domestic product was revised from a 3.8% decline to a 6.2%
drop in the fourth quarter mostly led by a 4.3% fall in consumer
spending, which was the largest decrease since the second quarter
of 1980."
The 30-year fixed-rate mortgage averaged 5.15% for the week
ending March 5, up from 5.07% last week, but still down from 6.03%
a year ago. Fifteen-year fixed-rate mortgages averaged 4.72%, up
from 4.68% last week, but still down from 5.47% a year ago.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 5.08%, up from 5.06% last week; the ARMs averaged 5.34% a
year ago. And one-year Treasury-indexed ARMs averaged 4.86%, up
from 4.81% last week; the ARMs averaged 4.94% a year ago.
To obtain the rates, the fixed-rate mortgages required payment
of an average 0.7 point, while the five-year ARM required an
average 0.6 point and the one-year ARM required an average 0.5
point. A point is 1% of the mortgage amount, charged as prepaid
interest.
The rates rose as the housing market showed continued signs of
slowing, Nothaft said.
"New home sales fell 10.2% in January to the slowest pace since
records began in January 1963 while pending existing home sales
slowed by 7.7%, the weakest since the series began in January 2001.
More recently the Federal Reserve noted in its March 4 regional
economic report that residential real estate markets remained in
the doldrums in most areas, with only scattered, very tentative
signs of stabilization."
Mortgage application volume was down a seasonally adjusted 12.6%
last week, compared with the week before, the Mortgage Bankers
Association reported on Wednesday.
-Amy Hoak; 415-439-6400; AskNewswires@dowjones.com
