SIGNS OF LOW INFLATION KEEP LONG TERM MORTGAGE RATES STEADY

Nationwide, 30-year fixed-rate mortgages averaged 6.15, for the week ending May 10th, down from last week's 6.16%.  Last year at this time, the 30-year FRM averaged 6.58%.  The average for the 15-year FRM this week is 5.87%, unchanged from last week’s 5.87%.  One-year “T”ARMs were up at 5.48% and five-year “T”ARMs averaged 5.89% up from last week’s 5.87%. 

"Low employment growth in April – the slowest pace since November 2004 – and downward revisions to both February and March job growth tempered market concerns of future increases in the rate of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "As a result, mortgage rates were little changed this week.  Despite a slowdown in house price growth, borrowers continue to refinance their loans, extracting approximately $70.5 billion in cash from their home equity in the first quarter of 2007, down slightly from $77.0 billion in the fourth quarter of 2006.  According to the Federal Reserve Board, homeowners had nearly $11 trillion in home equity at the end of 2006, an increase of 30% over the past three years."

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