Mortgage Rates Falling

Freddie Mac reported that the average 30-year Fixed Rate Mortgage (FRM) dropped to 5.67% in early February, down from a January of average of 5.76% and continuing a slide from a July peak of 6.73%. During the same time last year, FRMs averaged 6.22%. The average rate for a 5/1 Fixed Adjustable Rate Mortgage (ARM) fell to 5.21% in early February, down from a January average of 5.45%. The 1-year Treasury-Indexed ARM averaged 5.03% in early February, down from an average 5.23% in January. With all rates down, the 30-year FRM remains the value choice in this market; with the 5/1 Fixed ARM providing a balance between increased affordability and long-term security.