Rates Decline

The average 30-year fixed mortgage rate fell from 6.17% to 6.07% over the seven-day period ended Jan. 3, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.79% to 5.68%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 5.90% to 5.78%, and the average rate for one-year Treasury-indexed ARMs decreased from 5.53% to 5.47%, Freddie Mac reported. Fees and points averaged 0.5 of a point for 30-year fixed-rate mortgages and ARMs and 0.6 of a point for 15-year FRMs. "The latest home sales data ... sent mixed messages on the direction of housing activity towards the end of 2007," said Frank Nothaft, Freddie Mac's chief economist. "The mostly grave home sales reports came with a few light notes. While new-home sales fell in November to the slowest pace since April 1995, existing-home sales rose by a small margin to an annual pace of 5 million units." A year ago, the average 30-year and 15-year fixed rates were 6.18% and 5.94%, respectively, and the average hybrid and one-year ARM rates were 6.02% and 5.42%, Freddie Mac said. Freddie can be found online at http://www.freddiemac.com.