Mortgage Rates went UP this week

This week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.35% (with an average of 0.5 points) for the week ending March 30, 2006. This average is HIGHER from last week; which was at 6.32%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.02% for the week ending March 30, 2006 (with an average of 0.6 points). This average is HIGHER from last week when it averaged 5.96%.

One-year Treasury-indexed ARMs averaged 5.51% this week (with an average of 0.8 points). This average is HIGHER from last week when the average was at 5.41%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “The Fed raised rates this week, as was expected, but the market was a little surprised at the Committee’s coments, which implied more tightening in the future” “That raised the expectation that inflation may be more of a threat that was previously thought, and that kind of thinking promotes upward pressure on mortgage rates like we saw across the board this week.”

My advice is that if you have an interest-only loan or an option arm, you should think about refinancing NOW and try to fix your rate.

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April 1st, 2006 · Filed Under Keeping an Eye on the Market

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