Markets Are Calm While Awaiting GDP Figures And Fed Policy Statement
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 5.66 percent, with an average 0.6 points, for the week ending January 27, 2005, down slightly from last week when it averaged 5.67 percent. Last year at this time, the 30-year FRM averaged 5.68 percent. The average for the 15-year FRM this week is 5.14 percent, with an average 0.6 points, down from last week when it averaged 5.15 percent. A year ago, the 15-year FRM averaged 4.97 percent. Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.02 percent this week, with an average 0.6 points, down from 5.05 last week. There is no 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 4.18 percent this week, with an average 0.8 point, up from last week when it averaged 4.11 percent. At this time last year, the one-year ARM averaged 3.59 percent. "Until the market gets a better read of how the economy performed at the end of last year and how the Fed interprets that information, interest rates will likely remain calm," said Frank Nothaft, Freddie Mac vice president and chief economist. "And it should get that read when fourth quarter Gross Domestic Product (GDP) is released tomorrow. "Further, the Fed will release its policy statement next week, giving financial markets a better sense of what future actions the Fed may be contemplating. All of this will help determine where mortgage rates will be in the near future." |
