Arizona Real Estate Notebook

6.22% and 0.6 points - 30-year fixed-rate mortgage, average in Western U.S. for week ending November 16, 2006. Blue line is Freddie Mac forecast made 11/02/2006.

“Both long- and short-term mortgage rates fell this week on early signs that the threat of inflation may be waning,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The Producer Price Index (PPI) and Consumer Price Index (CPI) for October came in lower than expected and bond yields dropped, pulling mortgage rates lower.

“We’ve probably seen the worst of the housing slump, although it may not have entirely bottomed out yet. On the other hand, lower mortgage rates should help stimulate activity in the housing market.”