Freddie Mac: Worst of housing slump has passed

Portland Business Journal - November 17, 2006
Freddie Mac says the biggest slowdown in the housing market may be past, and falling mortgage rates should help stimulate the market.

The mortgage giant's weekly mortgage rate report shows 30-year fixed-rate mortgages fell to an average 6.24 percent this week, below year-ago levels.

One-year adjustable-rate mortgages fell to 5.53 percent, although adjustable-rate mortgages remain higher than year ago levels.

"We've probably seen the worst of the housing slump, although it may not have entirely bottomed out yet," says Freddie Mac Chief Economist Frank Nothaft. "Lower mortgage rates should help stimulate activity in the housing market."

Lenders, real estate agents and potential buyers will be watching for a report on October housing prices this month from the Office of Federal Housing Enterprise Oversight.