Inflation Jitters Push Up Mortgage Rates in Freddie Mac Weekly Survey
McLEAN, VA -- 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 6.23 percent, with an average 0.5 point, for the week ending February 2, 2006, up from last week's average of 6.12 percent. Last year at this time, the 30-year FRM averaged 5.63 percent. The average for the 15-year FRM this week is 5.81 percent, with an average 0.5 point, up from last week's average of 5.70 percent. A year ago, the 15-year FRM averaged 5.14 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.87 percent this week, with an average 0.5 point, unchanged from last week when it averaged 5.75 percent. A year ago, the five-year ARM averaged 5.00 percent. One-year Treasury-indexed ARMs averaged 5.33 percent this week, with an average 0.7 point, up from last week when it averaged 5.20 percent. At this time last year, the one-year ARM averaged 4.23 percent. "Declines in worker productivity coupled with accelerating labor costs increase the threat of inflation down the road. Inflationary pressure generated by these two factors pushes long-term mortgage rates upward, which is why we have seen rates rise these last two weeks," said Frank Nothaft, Freddie Mac vice president and chief economist. "Still, to keep things in perspective, mortgage rates are currently only about one-half a percentage point higher than they were at this time last year." "Mortgage rates will surely fluctuate in the weeks and months ahead, but the trend now is for higher rates over the long run." |
