Fixed Rates Decline

The average 30-year fixed mortgage rate fell from 5.77% to 5.71% over the seven-day period ending May 19, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate decreased from 5.33% to 5.27%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 5.21% to 5.07%, while the average rate for one-year Treasury-indexed ARMs rose from 4.23% to 4.26%. Fees and points averaged 0.7 of a point for all four mortgage categories. "It is remarkable how mortgage rates have remained so low for so long," said Frank Nothaft, Freddie Mac's chief economist. "But as long as inflation is held in check, there is little or no pressure to push mortgage rates higher. And at the moment, despite high fuel prices, core inflation does indeed seem to be a nonevent." A year ago, the average 30-year and 15-year fixed rates were 6.30% and 5.67%, respectively, and the average one-year ARM rate was 3.99%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.