Survey shows six-month low in fixed-rate mortgage rates

In Freddie Mac's most recent Primary Mortgage Market Survey, the 30-year fixed-rate mortgage averaged 6.78 percent, with an average seven-tenths of a point, for the week ending May 3. For the same week a year ago, the 30-year FRM averaged 7.14 percent.

The average for the 15-year FRM this week is 6.26 percent, with an average seven-tenths of a point.

A year ago, the 15-year FRM averaged 6.66 percent. The 15-year FRM has not been lower since the week ending November 23, 2001, when it averaged 6.24 percent.

One-year Treasury-indexed adjust-able-rate mortgages averaged 4.75 percent for the week ending May 3, with an average eight-tenths of a point, down from last week's average of 4.91 percent. For the same week a year ago, the one-year ARM averaged 6 percent.

"There seems to be some concern in the marketplace that the economic recovery will be slower than expected, lessening the fear of inflation. This, of course, allowed mortgage rates to drift further downward (for the week ending May 3)," said Frank Nothaft, Freddie Mac's chief economist. "As a matter of fact, Personal Income and Consumer Spending growth for the first quarter were moderate and showed inflation to be well constrained.

"And with mortgage rates at phenomenally low levels - close to 30-year lows - housing will continue to contribute to a healthy economy. Although the economy most certainly will slow from the fast pace it set in the first quarter, 2002 will still be a very good year."