Average U.S. 30-year, fixed-rate mortgage loans remained unchanged at 6.16 percent, MarketWatch reported May 3, 2007.
"'The recently advanced report of first quarter Gross Domestic Product (GDP) was weaker than expected, growing only 1.3%. The housing market alone shaved a full percentage point off real GDP growth,' said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release. 'Additionally, both consumer spending and price increases in consumer expenditures were quite tame in March.'"
The 15-year, fixed-rate mortgage averaged 5.87 percent, also unchanged from the previous week and down from its 6.22 percent average a year ago.
"'Given that rates on home equity loans are currently around 8.25%, homeowners have a big incentive to use cash-out refinancing as an alternative source of financing,' [Nothaft] said."
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