30-Year Mortgage Rate Reaches a 14 Month Low
Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market SurveySM (PMMSSM) in which the 30-year fixed-rate mortgage (FRM) averaged 5.56 percent, with an average 0.6 point, for the week ending June 9, 2005, down from last week when it averaged 5.62 percent. Last year at this time, the 30-year FRM averaged 6.30 percent. The 30-year FRM has not been this low since April 1, 2004, when it averaged 5.52 percent. The average for the 15-year FRM this week is 5.14 percent, with an average 0.5 point, also down from last week when it averaged 5.20 percent. A year ago, the 15-year FRM averaged 5.67 percent. Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.01 percent this week, with an average 0.5 point, down from last week when it averaged 5.07 percent. There is no annual historical information for last year since Freddie Mac only began tracking this mortgage rate at the start of this year. One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.21 percent this week, with an average 0.7 point, down from last week when it averaged 4.26 percent. At this time last year, the one-year ARM averaged 4.14 percent. "The May employment report came in at less than half of what was expected last month, which pushed bond yields -- and mortgage rates -- down further," said Frank Nothaft, Freddie Mac vice president and chief economist. "Consequently, markets are now speculating whether the Fed will continue raising rates at the same pace that it has been, or will it begin to moderate the frequency of its actions." "Taking into consideration the fact that mortgage rates have fallen from the earlier peak at the end of March, we have lowered our forecast for long-term rates. We now expect that the 30-year fixed-rate mortgage rates will likely end up somewhere between 5.9 percent and 6.2 percent by the end of this year." |
