Rent Real EstateRates Drift Lower on Reports of Economic Weakness; Others Point to Progress in Housing Market
The 15-year FRM this week averaged 5.90 percent with an average 0.6 point, down from last week when it averaged 5.93 percent. A year ago at this time, the 15-year FRM averaged 6.15 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.97 percent this week, with an average 0.6 point, down from last week when it averaged 6.03 percent. A year ago, the 5-year ARM averaged 6.32 percent.
One-year Treasury-indexed ARMs averaged 5.15 percent this week with an average 0.6 point, down from last week when it averaged 5.33 percent. At this time last year, the 1-year ARM averaged 5.74 percent.
“Mortgage rates eased a bit over the holiday-shortened week following release of economic data that suggest consumer spending may slow,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The economy grew at an upwardly revised 3.3 percent pace in the second quarter, boosted by the smallest trade deficit in eight years, and residential fixed investment slowed growth by 0.6 percent, the least amount since the same period a year ago."
“However, personal income fell 0.7 percent in July, the first decline since August 2005 and will likely slow consumer spending in the third quarter.”