Home & Mortgage

The relatively higher level of interest rates has slowed home sales in recent months, even though house prices still grew at a double-digit annualized pace during the final quarter of 2005. Nationally, home values increased 13% from the 4th quarter of 2004 through the 4th quarter of 2005, up from the 12.1% growth seen over the four quarters ended in Dec. 2004. The Mountain states showed the strongest home-value appreciation in the U.S., followed by the Pacific region.

This week the mortgage rate inched slightly lower again (this was 2nd week of decline). According to Freddie Mac's weekly report, the 30-year fixed mortgage is at a national average of 6.24%, down a little from 6.26% a week earlier. Last year at this time, the loan averaged 5.79%. The average on the 15-year mortgage, a popular refinancing option, was unchanged at 5.89%. A year ago, the 15-year averaged 5.33%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged 5.97%, up slightly from last week's 5.96%. A year ago, the 5-year ARM averaged 5.17%. The 1-year Treasury-indexed ARMs averaged 5.34%, down from last week when it averaged 5.32%. At this time last year, the one-year ARM averaged 4.14%.