Fixed Rates Keep Sliding

The average 30-year fixed mortgage rate fell to 5.75% for the seven-day period ending May 5 from 5.78% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate decreased from 5.33% to 5.31%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 5.20% to 5.16%, while the average rate for one-year Treasury-indexed ARMs crept up from 4.21% to 4.22%. Fees and points averaged 0.6 of a point for fixed-rate mortgages and hybrid ARMs and 0.7 of a point for one-year ARMs. "Long-term mortgage rates, which dropped again for the fifth consecutive week, remain low enough to keep refinancing activity a viable option for many," said Frank Nothaft, Freddie Mac's chief economist. "Not only can homeowners take some equity out of their home, many may also be able to lower their mortgage rate at the same time." A year ago, the average 30-year and 15-year fixed rates were 6.12% and 5.47%, respectively, and the average one-year ARM rate was 3.76%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.