Mortgage rates DIP in this weeks survey!!

This week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.34% (with an average of 0.7 points) for the week ending March 16, 2006. This average is LOWER from last week; which was at 6.37%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.93% for the week ending March 16, 2006 (with an average of 0.7 points). This average is DOWN from last week when it averaged 6.03%.

One-year Treasury-indexed ARMs averaged 5.37% this week (with an average of 0.8 points). This average is DOWN from last week when the average was at 5.45%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “Financial markets, hedging against the potential build up in inflation, pushed mortgage rates higher last week” “However, market indicators this week seemed to point to less of a threat of inflation, and that allowed rates to drift a little lower” “Housing starts fell in February as expected, but were still stronger than had been forecast, while January figures were revised upward. This is a good sign that housing activity, although slowing from record levels set in the past few years, will continue to remain healthy this year.”

Looking at this report if you have an interest-only loan or an option arm, you should think about refinancing now rather than later. Also if you are thinking about buying, you should be getting all your information ready so you can make this purchase. This year is turning out to be the “year of the buyer” as many predicted. No market bubble bursting but it is definitely a buyers market.