Rates Fall; ARMs Hit Record Low

The average 30-year fixed mortgage rate fell to 5.62% for the week ending May 9 from 5.70% the previous week, and the one-year ARM rate hit a new record low, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.03% to 4.97%, and the average rate for one-year Treasury-indexed adjustable-rate mortgages fell from 3.74% to a new survey-record low of 3.66%. Fees and points averaged 0.7 points for all three mortgage categories. "It is amazing how resilient the American housing system continues to be," said Frank Nothaft, Freddie Mac's chief economist. "Even in the face of recession, terrorist attack, and international conflicts, the housing industry is booming. New records have been set in originations, refinancing, and housing starts over the last few years, highlighting the industry as a strong, functional segment of the economy." A year ago, the average 30-year and 15-year fixed rates were 6.79% and 6.27%, respectively, and the average one-year ARM rate was 4.80%, Freddie Mac said.