Fed Moves Don't Budge MortgageRates

WASHINGTON - (05/06/05) -- Long-term mortgage rates declinedslightly this week, for the fifth week in a row, despite theFederal Reserve's efforts to push short-term rates higher,according to Freddie Mac. The average for the fixed-rate 30-yearloan dipped to 5.75%, from 5.78% last week; while the average forthe 15-year, fixed-rate mortgage slipped to 5.31%, from 5.33%. ARMrates were stable, with the average for the five-year ARM dippingto 5.16%, from 5.20% last week; and the one-year ARM average risingslightly to 4.22%, from 4.21%. Mortgage rates have been unaffectedby the Fed's rate-hiking, which has entailed eight increases in theovernight rate in the past nine months to 3%. During that time,mortgage rates, were a tied more to long-term bond rates, haveremained stable, even falling some, as the 30-year mortgage averagewas at 6.12% a year ago.