Long-Term Mortgage Rates Drop For Fourth Straight Week
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 5.63 percent, with an average 0.7 points, for the week ending February 3, 2005, down from last week when it averaged 5.66 percent. Last year at this time, the 30-year FRM averaged 5.72 percent. The average for the 15-year FRM this week is 5.14 percent, with an average 0.7 points, unchanged from last week when it also averaged 5.14 percent. A year ago, the 15-year FRM averaged 5.03 percent. Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.00 percent this week, with an average 0.6 points, down slightly from 5.02 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 4.23 percent this week, with an average 0.7 point, up from last week when it averaged 4.18 percent. At this time last year, the one-year ARM averaged 3.61 percent. "Not surprisingly, the one-year ARM rose on the expectation that the Fed would raise rates once again when they met last week," said Frank Nothaft, Freddie Mac vice president and chief economist. "We will probably see the ARM rise a little more over the next few weeks in anticipation of further rate increases by the Fed while the long-term fixed rates remain fairly flat. "Mortgages rates remain historically low, which helps to maintain a robust housing industry. Looking forward, we continue to expect rates will not rise very much this year, and that the economy will grow at a sustainable pace, and this should translates into a continued good atmosphere for housing. |
