Mortgage rates hold steady

Average rates for 30- and 15-year loans unchanged on signs of consumer spending weakness and cooling inflation.
May 3 2007: 1:59 PM EDT

Mortgage rates remained unchanged this week, Freddie Mac said Thursday, following a slowdown in consumer spending growth and a tame inflationary reading.

The average rate on 30-year fixed-rate loans averaged 6.16 percent for the week ending May 3, unchanged from the previous week, the mortgage finance firm said. Last year at this time, 30-year mortgage rates averaged 6.59 percent.

"Additionally, both consumer spending and price increases in consumer expenditures were quite tame in March. These contributing factors allowed mortgage rates to hold steady this week."

The rate on 15-year loans averaged 5.87 percent, unchanged from the previous week, Freddie Mac said. A year ago, the 15-year rate averaged 6.22 percent.

Five-year adjustable-rate mortgages eased to 5.87 percent from 5.88 percent last week. The five-year ARM averaged 6.21 percent a year ago.The average one-year adjustable-rate mortgage fell to 5.42 percent, down from 5.43 percent the previous week. At this time last year, the loan averaged 5.67 percent.

Some good news for a change, mortgage rates held steady this week giving many a breather from A.R.M. creep. How much of a breather is debatable but as a wise man once said, ‘If you hit yourself in the head with two hammers long enough, one hammer feels great!’
Let’s hope this buys some a little more time.
Vern