Fixed Rates Inch Higher

The average 30-year fixed mortgage rate rose from 6.60% to 6.62% over the seven-day period ended May 25, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 6.20% to 6.23%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages fell from 6.23% to 6.21%, and the average rate for one-year Treasury-indexed ARMs declined from 5.62% to 5.61%, Freddie Mac reported. Fees and points averaged 0.4 of a point for fixed-rate mortgages, 0.6 of a point for hybrid ARMs, and 0.7 of a point for one-year ARMs. "Currently, mortgage rates are roughly a half a percentage point higher than they were at the start of the year, which has led to some moderation in the housing market," said Frank Nothaft, Freddie Mac's chief economist. "Indeed, in the first quarter of 2006, the housing industry directly accounted for only 7% of the real Gross Domestic Product, compared with 19% in the fourth quarter of 2005." A year ago, the average 30-year and 15-year fixed rates were 5.65% and 5.21%, respectively, and the average one-year ARM rate was 4.21%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.