Mortgage Rates, Application Volume Show Little Movement for Week

Mortgages rates, which were drifting during the week ended April 3 were virtually frozen during the week ending April 10 according to Freddie Mac's Primary Mortgage Market Survey.

The 30-year fixed-rate mortgage (FRM) was unchanged at 5.88 percent although fees and points were down to 0.4 from 0.5.

The 15-year FRM had an average interest rate of 5.42 percent, identical to the week before although, again, fees and points went from 0.5 to 0.4.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) carried an average contract interest rate of 5.56 percent with 0.6 point, a bit of downward movement from the previous week when the average was 5.59 percent with 0.6 point.

Finally, the one-year Treasury-indexed ARM lost one basis point, averaging 5.18 percent for the week although fees and points moved upward to 0.7 from 0.5 point.

Frank Nothaft, Freddie Mac vice president and chief economist said, "Once again, mortgage rates held relatively steady this week amid release of subdued economic data. For example, pending existing home sales hit the lowest value since its (sic) introduction in January 2001, presaging additional weakness in single-family home sales over the upcoming months. Further, the economy lost 80,000 jobs in March, more than the market had anticipated, and the prior two months were revised downward as well.

"Meanwhile, house sales prices have fallen in most metropolitan areas, although there have been price gains in some areas. Just over half of the 150 large cities across the nation experienced negative annual house price growth in 2007, according the National Association of Realtors. The largest yearly drop of 18.8 percent occurred in Lansing, MI, while Cumberland, MD, experienced the strongest growth at 19.0 percent."

The Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association showed rates to be essentially unchanged as well.

The average contract interest rate for 30-year FRMs decreased to 5.74 percent from 5.78 percent, with points, including the origination fee, decreasing to 1.05 from 1.11.

The rate for 15-year FRMs did have a noticeable change, decreasing to 5.27 percent from 5.39 percent with points increasing to 1.19 from 1.11. The average contract interest rate for one-year ARMs decreased to 7.02 percent from 7.06 percent, with points decreasing to 1.28 from 1.46.

Loan applications increased 2.5 percent on a seasonally adjusted basis from the previous week and 2.7 percent when unadjusted. The index measuring applications was up 16.4 percent from the same week in 2007.

Refinancing as a share of all mortgage activity increased slightly to 53.5 percent compared to 52.2 percent a week earlier but adjustable-rate mortgages garnered only 6.0 percent of the loan market based on applications. ARM applications had a 6.5 percent share the week before.