Mortgage Daily

Published On: July 27, 2006
Mortgage Market Outlook Improves

Average 30-year fixed rate 6.72%

July 27, 2006


photo of Coco Salazar
Application activity was steady as rates tumbled on news that the economy is moderating.

The 30-year fixed-rate mortgage averaged 6.72%, sliding 8 basis points from last week, according to Freddie Mac’s latest Primary Mortgage Market Survey. A year ago, the average was 5.77%.

“Mortgage rates drifted lower this week on indications that economic growth is moderating, inflation remains under control and the Fed just may pause raising rates for awhile,” commented Frank Nothaft, Freddie chief economist, in the written statement.’s survey of 100 mortgage brokers, bankers and other individuals indicated rates have reached a plateau but the move will be upward if there is a change over the next 35 to 45 days; 44 percent of the panelists said rates will rise, an equal amount believed rates would remain relatively unchanged and only 12 percent foresaw a decrease.

Fannie Mae’s July outlook has the 30-year averaging 6.75% for the quarter and holding at 6.80% until the fourth quarter 2007. This is a much slower pace than the forecasts of Freddie and the Mortgage Bankers Association, which respectively expect that the average next quarter will be 6.80% and 6.90%.

The 15-year stepped down 7 BPS over the past week to 6.34%, Freddie said.

Long-term mortgage rates have yet to follow the direction of the 10-year Treasury note, which yielded 5,08% Thursday afternoon, 5 BPS higher than a week ago.

Treasury-indexed adjustable-rate mortgages with a hybrid, 5-year term edged down 1 BPS from a week ago to an average of 6.35% while 1-year ARMs slipped 2 BPS to 5.78%, Freddie reported. As of Wednesday, the 1-year T-bill itself stood at 5.16%, dropping 6 BPS from a week earlier, according to Federal Reserve data.

The volume of mortgage applications came in about 1 percent lower than in the prior week, as a 2-percent downturn in demand for money to purchase a home overshadowed the 1-percent increase in refinance requests, MBA reported.

The trade group reported the refinance share edged up from the previous week to 36% while for ARMs remained at 29%.


Coco Salazar is an assistant editor and staff writer for e-mail: [email protected].com

Tools for Your Next Big Decision.

Amortization Calculator

Affordability Calculator

Mortgage Calculator

Refinance Calculator

FHA Mortgage Calculator

VA Mortgage Calculator

Real Estate Calculator


Pre-Approval Resources!

Making well educated decions in a matter of minutes and stay up to date on the latest news Mortgage Daily has to offer. Read our latest articles to stay up to date on what’s going on…

Resource Center

Since 1998, Mortgage Daily has helped millions of people such as yourself navigate the complicated hurdles of the mortgage industry. See our popular topics below, search our website. With over 300,000 articles, we are guaranteed to have something for you.

Your mortgages approval starts here.

Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here.

Stay Up To Days with Today’s Latest Rates


Today’s rates starting at


5/1 ARM
$200,000 LOAN

Home Refinance

Today’s rates starting at


$200,000 LOAN

Home Equity

Today’s rates starting at


$200,000 LOAN


Today’s rates starting at


$200,000 LOAN