Mortgage Rates Dip

McLEAN, Va. - (05/12/06) -- Long-term mortgage rates slippedslightly this week, but remain near five-year highs, according toFreddie Mac. The average for the 30-year, fixed-rate mortgage edgeddown to 6.58%, from 6.59% last week; while the average for the15-year, fixed-rate loan slipped to 6.17%, from 6.22%. ARM rateswere mixed, with the one-year ARM average declining to 5.62% thisweek, from 5.67% last week; and the five-year ARM average inchingup to 6.22%, from 6.21%. Frank Nothaft, chief economist for FreddieMac, attributed the leveling off of rates to lower job growth."Less-than-expected job growth in April helped mortgage rates tolevel off this week. Even ARM rates were little affected by theFederal Reserve's increase in the federal funds rate," saidNothaft. "However, next week's release of the April consumer- andproducer-price indexes may lift mortgage rates higher if thefigures show an acceleration in inflation."