Freddie Mac’s Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) averaging 6.53% with an average 0.4 point for the week ending June 7, 2007, up from the prior week when it averaged 6.42%. Last year at this time, the 30-year FRM averaged 6.62%. The 30-year FRM has not been higher since the week ending August 10, 2006, when it averaged 6.55%.
The 15-year FRM on Friday averaged 6.22% with an average 0.4 point, up from the previous week when it averaged 6.12%. A year ago, the 15-year FRM averaged 6.23%. The 15-year FRM has not been higher since the week ending August 3, 2006, when it averaged 6.27%.
“Mortgage rates climbed this week owing to market concerns of a tight labor force and wage growth. May’s unemployment rate remained at the second lowest level since May 2001 while average hourly earnings rose,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Meanwhile, Freddie Mac released a new purchase-transaction only version of its Conventional Mortgage Home Price Index this week which showed a sharp deceleration in house-price appreciation in the first quarter of 2007. As house prices grow less quickly and household incomes rise, the housing market will likely recover from its current slump, but perhaps not before the end of this year.”
NAR Senior Economist Lawrence Yun paints a somewhat more optimistic picture: “Nashville Home sales will probably fluctuate in a narrow range in the short run, but gradually trend upward with improving activity by the end of the year. It’s important to keep in mind that all real estate is local, and many markets are expected to have higher sales and strengthening prices during the second half of this year.”
These current mortgage rates should not affect Nashville as much as the rest of the Country as Nashville real estate is still rated in the top 10 for value by most major publications.
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