Annual Average Mortgage Rates Lower Than Previously Forecast
McLEAN, VA -- Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.72 percent, with an average 0.6 points, for the week ending November 24, 2004, down a little from last week when it averaged 5.74 percent. Last year at this time, the 30-year FRM averaged 5.83 percent. The average for the 15-year FRM this week is 5.15 percent, with an average 0.6 points, unchanged from last week. A year ago, the 15-year FRM averaged 5.17 percent. One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.27 percent this week, with an average 0.7 point, up from last week when it averaged 4.17 percent. At this time last year, the one-year ARM averaged 3.72 percent. "At this time last year, our forecast called for interest rates for 30-year fixed-rate mortgages to exceed six percent by this time this year," said Frank Nothaft, Freddie Mac vice president and chief economist. "Today's annual average mortgage rates are below even that projection thanks to the spring 'soft-patch' in economic growth. "Nevertheless, our outlook is that long-term rates are destined to rise to a still homebuyer friendly range that will most likely cause home sales to cool relative to their current record highs." |
