Freddie Survey Finds Rates Tie Low Mark

The average rate for a 30-year fixed-rate mortgage dropped slightly to match a Freddie Mac Primary Mortgage Market Survey-record low. Freddie Mac chief economist Frank Nothaft said the industry might be near a bottom, adding, "Rates for fixed-rate mortgages hovered at record lows this week as ARM rates eased further." The average 30-year FRM rate during the week ended April 30 was 4.78%, down from 4.8% the previous week and 6.06% a year ago; the average 15-year FRM rate remained unchanged for the third week in a row at 4.48% and was down from 5.59% a year ago; the average five-year Treasury-indexed hybrid adjustable-rate mortgage rate was 4.8%, down from 4.85% the previous week and 5.73% a year ago; and the average one-year Treasury ARM rate was 4.77%, down from 4.82% the previous week and 5.29% a year ago. Mr. Nothaft cited as the "most important" evidence the housing market may be moving toward a bottom is a drop in the inventory of unsold new homes to a low not seen since 2002. Among other indicators, he also noted that the Standard & Poor's/Case-Shiller 20-city composite home price index did not show a record year-over-year decline for February, the first time there was not a larger decrease since December 2006.