Long-Term Mortgage Rates Highest In Nearly Four Years

Freddie Mac today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey^SM (PMMS^SM) in which the 30-year fixed-rate mortgage (FRM) averaged 6.58 percent, with an average 0.5 point, for the week ending April 27, 2006, up from last week's average of 6.53 percent. Last year at this time, the 30-year FRM averaged 5.78 percent. The 30-year FRM has not been higher since the week ending June 20, 2002, when it averaged 6.63 percent.

The average for the 15-year FRM this week is 6.21 percent, with an average 0.5 point, up from last week's average of 6.17 percent. A year ago, the 15-year FRM averaged 5.33 percent. The 15-year FRM has not been higher since the week ending May 31, 2002, when it averaged 6.22 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.21 percent this week, with an average 0.6 point, up from last week when it averaged 6.16 percent. A year ago, the five-year ARM averaged 5.20 percent.

One-year Treasury-indexed ARMs averaged 5.68 percent this week, with an average 0.7 point, up from last week when it averaged 5.63 percent. At this time last year, the one-year ARM averaged 4.21 percent.

"Indications of a stronger economy gave rise to an increase in mortgage rates this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Consumer confidence and existing home sales unexpectedly rose. Much of this strength is attributed to a healthy labor market, which translates into greater consumer spending. This should support an active housing market over the next few months."

"We expect mortgage rates to gradually rise throughout the year. A stronger labor market, coupled with moderation in house price growth, means our outlook for overall housing conditions remains upbeat."
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