Mortgage Rates Hold Steady As A Rate Cut Is Believed To Be Coming

Fixed rate mortgages averages held pretty steady throughout the week while the adjustable rate mortgage average declined. Short term mortgage rates may continue to slide downward as speculation of a Fed rate cut at the end of the month.

According to Freddie Macs Primary Mortgage Market Survey, the average 30 year fixed rate mortgage held steady for another week at 5.88 percent with brokers charging an average of 0.4 percent in fees and points per loan. The 15 year fixed rate mortgage average saw a slight improvement from 5.42 percent to 5.40 percent with an average of 0.5 percent in fees and points per loan.

Freddie Mac vice president, in a statement today said “the federal funds future contracts suggest nearly a 100% probability that the Fed will cut rates at the end of this month.” Adjustable rate mortgages took the news in stride and continued their downward pattern.

The five year arm fell 0.08 percent this week to 5.48 percent with average fees and points of 0.6 percent per loan. Finally the one year arm also fell 0.08 percent this week to 5.1 percent with average fees and points of 0.6 percent per loan.

Submitted by admin 4/17/08