Mortgage rates at six-week low

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ATLANTA BUSINESS CHRONICLE - BY Jeff Clabaugh


Long-term mortgage rates fell to a six-week low and adjustable rate mortgages also eased, according to Freddie Mac’s weekly rate report.

A 30-year fixed-rate mortgage averaged 5 percent in the week ending May 6, down from 5.06 percent last week. A year ago, 30-year mortgages were averaging 4.84 percent, said Freddie Mac, which has a regional office in Atlanta.

One-year adjustable rate mortgages fell to 4.07 percent, while some hybrid adjustable rate mortgages fell to an all-time low.
“Treasury bond and note yields declined this week, and rates on fixed-rate mortgages and hybrid ARMS followed suit,” said Freddie Mac (NYSE: FRE) chief economist Frank Nothaft. “Rates for both the 30-year and 15-year fixed-rate mortgages were the lowest in six weeks [and] initial rates on 5/1 hybrid ARMs hit an all-time low [of 3.97 percent] since they were added to the survey in the beginning of 2005.”

Earlier this week, the National Association of Realtors reported pending sales of existing homes rose for the second consecutive month in March. Three of the nation’s four census regions showed an increase in sales