June 8, 2008

Freddie Mac: Long rates Unchanged

Long-Term Rates Nearly Unchanged

Freddie Mac today released the results of its Primary Mortgage Market Survey.

30-year fixed-rate mortgage: Averaged 6.09 percent with an average 0.6 point for the week ending June 5, 2008. Last year at this time, the 30-year FRM averaged 6.53 percent.

15-year fixed-rate mortgage: Averaged 5.65 percent with an average 0.6 point A year ago at this time, the 15-year FRM averaged 6.22 percent.

5-year Treasury-indexed hybrid ARM: Averaged 5.51 percent this week. A year ago, the 5-year ARM averaged 6.24 percent.

One-year Treasury-indexed ARM: Averaged 5.06 percent this week with an average 0.7 point, down from last week when it was 5.22 percent. At this time last year, the 1-year ARM: Averaged 5.65 percent.

Although the GDP grew at a faster rate in the first quarter than originally reported, consumer spending rose only 1 percent, representing the smallest increase since the 2001 recession. The Fed has signaled that this may be the end of interest rate reductions for now. Bernanke is becoming more concerned with inflation with oil and food fueling a serious situation. The rate reductions have brought rates down by a little more than 1/2 point, but that hasnt been nearly enough to ease the pain of the housing crisis. Since the Fed is virtually out of ammo, it will mean that the Government will have to assume much of this debt and become the lender of last resort. In other words the tax payer will certainly take the hit.

Thanks for Reading'

Howard Bell

www.yourpropertypath.com
A 450 article driven web site focused primarily on property management

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