Fixed Rates Dip Again

The average 30-year fixed mortgage rate fell from 5.71% to 5.65% over the seven-day period ending May 26, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate decreased from 5.27% to 5.21%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages was unchanged, at 5.07%, and the average rate for one-year Treasury-indexed ARMs declined from 4.26% to 4.21%. Fees and points averaged 0.6 of a point for fixed-rate mortgages and 0.7 of a point for ARMs. "Release of the May Federal Open Market Committee minutes this week reinforced the notion that inflation in the economy in the first three months of the year was contained, and upward price pressure in the near term seems unlikely," said Frank Nothaft, Freddie Mac's chief economist. "And when inflation is contained, mortgage rates decline. Housing continued to help fuel the economy this year, accounting for about 20% of real GDP growth in the first quarter alone." A year ago, the average 30-year and 15-year fixed rates were 6.32% and 5.69%, respectively, and the average one-year ARM rate was 3.87%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.