Mortgage Rates Move Down

On last Thursday the mortgage finance firm Freddie Mac stated that the
long-term mortgage rates fell last week for the 9th week out of the last 10.

Fixed-Rate Loan:
The rate on 30-year, fixed-rate loans averaged 5.62% last week, with an
average 0.6 point payable upfront, down from last week's average of
5.65% (A year ago, the 30-year fixed-rate loan averaged 6.28%).
According to the mortgage finance firm's survey, the average for the
15-year mortgage also edged lower to 5.20% last week from 5.21% the
previous week, with an average 0.6 point payable upfront (The 15-year
loan averaged 5.63% this time last year).

Adjustable Rate Mortgages (ARM):
The 5-year ARM inched higher to an average 5.10% last week, with an
average 0.5 point payable up front. This is up from last week's average of
5.07%. The 1-year ARM also rose to average 4.26% this week, with an
average 0.6 point payable up front, up from the previous week when it
averaged 4.21% (At this time last year, the 1-year adjustable-rate loan
averaged 3.98%).

Freddie Mac said that the improvements in the job market and rising
wages would likely put upward pressure on mortgage rates in coming
months but the same growth in income will partially offset any rise in
rates, enabling housing industry to continue its healthy progress. So, it
expects May home sales to remain strong, given last month's low rates.