Rates Hold Steady

The average 30-year fixed mortgage rate held steady at 6.16% for the seven-day period ended May 3, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate was also unchanged, at 5.87%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 5.88% to 5.87%, and the average rate for one-year Treasury-indexed ARMs decreased from 5.43% to 5.42%, Freddie Mac reported. Fees and points averaged 0.5 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. "The recently advanced report of first-quarter gross domestic product was weaker than expected, growing only 1.3%," said Frank Nothaft, Freddie Mac's chief economist. "The housing market alone shaved a full percentage point off real GDP growth. Additionally, both consumer spending and price increases in consumer expenditures were quite tame in March. These contributing factors allowed mortgage rates to hold steady this week." A year ago, the average 30-year and 15-year fixed rates were 6.59% and 6.22%, respectively, and the average hybrid and one-year ARM rates were 6.21% and 5.67%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.