Fear Of Inflation Nudges Mortgage Rates Higher For The Sixth Consecutive Week
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.01 percent, with an average 0.7 points, for the week ending March 24, 2005, up from last week when it averaged 5.95 percent. Last year at this time, the 30-year FRM averaged 5.40 percent. The average for the 15-year FRM this week is 5.56 percent, with an average 0.7 points, up from last week when it averaged 5.47 percent. A year ago, the 15-year FRM averaged 4.70 percent. Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.35 percent this week, with an average 0.7 points, up from 5.31 last week. 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 4.24 percent this week, with an average 0.8 point, up from last week when it averaged 4.20 percent. At this time last year, the one-year ARM averaged 3.36 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) "Renewed concern over the threat of inflation pushed up long-term mortgage rates, while the most recent FOMC statement caused short-term rates to float upwards," said Frank Nothaft, Freddie Mac vice president and chief economist. "Although mortgage rates have risen these past six weeks, they still remain at very affordable levels." "This would explain why new home sales figures were surprisingly high in February. Although mortgage rates are beginning to rise, we have yet to experience much of a slow down in the housing market." |
