As Bond Yields Fall, So Do Mortgage Rates
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 5.57 percent, with an average 0.8 points, for the week ending February 10, 2005, down from last week when it averaged 5.63 percent. Last year at this time, the 30-year FRM averaged 5.66 percent. The 30-year FRM has not been this low since the week ending April 1, 2004, when it averaged 5.52 percent. The average for the 15-year FRM this week is 5.10 percent, with an average 0.7 points, down from last week when it averaged 5.14 percent. A year ago, the 15-year FRM averaged 4.96 percent. Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.99 percent this week, with an average 0.7 points, down very slightly from 5.00 last week. There is no annual historical information for last year since Freddie Mac began tracking this mortgage rate at the start of this year. One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.11 percent this week, with an average 0.8 point, down from last week when it averaged 4.23 percent. At this time last year, the one-year ARM averaged 3.57 percent. "January's employment figures came out lower than expected, allowing bond yields to fall even further. This, in turn, caused mortgage rates to perform somewhat differently than we had expected," said Frank Nothaft, Freddie Mac vice president and chief economist. "In particular, the 1-year ARM fell for the first time in five weeks. "According to Freddie Mac's weekly survey, interest rates on 30-year fixed-rate mortgages have not risen above six percent in at least six months, which has helped to keep the housing market bustling. As a matter of fact, we are forecasting that long term mortgage rates will average only about six percent for the year." |
