Mortgage Rate Down

After increases in two of the last three weeks, mortgage rates reversed the trend and went down this week on lower than expected figures for the 3rd quarter gross domestic product. Lower rates may generate a spurt of refinancing by those who want to get out of ARMs that are scheduled to reset in the next year.

According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.31% in the week that ended today -- down from its 6.40% average last week. The rate was exactly same one year back. The 15-year fixed rate averaged at 6.02% this week, again a slide from last week's 6.10%. At this time last year this rate was 5.85%.

Rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged at 6.05% decreasing from last week's 6.14%. This rate averaged 5.76% a year ago. The 1-year Treasury-indexed ARMs have an average rate of 5.53%, down from last week's rate of 5.60%. At this time in 2005, the 1-year ARM averaged 5.09%.