30-year fixed-rate mortgage: Averaged 6.52 percent with an average 0.7 point for the week ending July 31, 2008, down from last week when it averaged 6.63 percent. Last year at this time, the 30-year FRM averaged 6.68 percent.
The 15-year fixed-rate mortgage : Averaged 6.07 percent with an average 0.6 point, down from last week when it averaged 6.18 percent. A year ago at this time, the 15-year FRM averaged 6.32 percent.
Five-year Treasury-indexed ARMs: Averaged 6.07 percent this week, with an average 0.6 point, down from last week when it averaged 6.16 percent. A year ago, the 5-year ARM averaged 6.29 percent.
One-year Treasury-indexed ARMs: Averaged 5.27 percent this week with an average 0.6 point, down from last week when it averaged 5.49 percent. At this time last year, the 1-year ARM averaged 5.59 percent.
Look at the price declines of oil and gold as well as building materials and you see the kind of inflationary pressures easing necessary for rates to ease. During the recent Fed meeting, rates were held steady and the markets rallied by more than 300 points.
Much of the price built into commodities was speculative and if the slowdown is real we will all see inflationary pressures drop. Oppenheimer's oil analyst thinks that oil could drop below $75 a barrel, the Saudis think that oil should be priced at $80. If we can see an economic slowdown, then the Fed can reduce rates and hopefully get back to the housing crises as the number one priority.
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