Rates Rise Slightly, Still Low

Freddie Mac's Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) averaging 6.12% with an average 0.4 point for the week ending December 14, 2006, up slightly from the prior week when it averaged 6.11%. Last year at this time, the 30-year FRM averaged 6.30%.

The 15-year FRM on Friday averaged 5.86% with an average 0.5 point, also up slightly from last week when it averaged 5.84%. A year ago, the 15-year FRM averaged 5.85%.

"Mixed economic reports have kept mortgage rates from making any drastic changes this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "On the upside, there was stronger job growth and greater than expected retail sales in November. Offsetting that news was weaker wage growth in that same time frame and lower indications of consumer sentiment in December. Long-term mortgage rates, while expected to rise over the new year, will very likely not get up to even 7%, which will help to moderate the current weakness in the housing market."

This is a great time to secure a long term hold in the downtown Nashville condo market.