August 23, 2008

Freddie Mac Update: Rates Lower This Week

Housing Continues to Show Signs of Weakness

30-year fixed-rate mortgage: Averaged 6.47 percent with an average 0.7 point for the week ending August 21, 2008, down from last week when it averaged 6.52 percent. Last year at this time, the 30-year FRM averaged 6.52 percent.

The 15-year fixed-rate mortgage: Averaged 6.00 percent with an average 0.7 point, down from last week when it averaged 6.07 percent. A year ago at this time, the 15-year FRM averaged 6.18 percent.

Five-year Treasury-indexed ARMs: Averaged 5.99 percent this week, with an average 0.6 point, down from last week when it averaged 6.02 percent. A year ago, the 5-year ARM averaged 6.34 percent.

One-year Treasury-indexed ARMs: Averaged 5.29 percent this week with an average 0.5 point, up from last week when it averaged 5.18 percent. At this time last year, the 1-year ARM averaged 5.60 percent.

Frank Nothaft, Freddie Mac vice president and chief economist: "Even with the current historically affordable mortgage rates, news continues to show signs of weakening in the housing sector,"
Next week will be telling when house price indices from S&P/Case-Shiller, OFHEO and Freddie Mac will be released. especially interesting will be whether the descent of home prices will begin to slow or not.

I like to watch the the S&P/Case-Shiller index, because it will track homes sold and then resold. This index measures price change by tracking a home that has sold and then sold again. most of the indexes do not track price change from one sale to the next, making this one valuable index.

Thanks for Reading

Howard Bell

A web site of over 450 articles related to real estate focused primarily on property management.

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