Mortgage Rates Tic Up For The Second 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 5.69 percent, with an average 0.7 points, for the week ending February 24, 2005, up from last week when it averaged 5.62 percent. Last year at this time, the 30-year FRM averaged 5.58 percent. The average for the 15-year FRM this week is 5.22 percent, with an average 0.7 points, up from last week when it averaged 5.14 percent. A year ago, the 15-year FRM averaged 4.89 percent. Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.05 percent this week, with an average 0.8 points, unchanged from 5.05 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 4.16 percent this week, with an average 0.8 point, up slightly from last week when it averaged 4.15 percent. At this time last year, the one-year ARM averaged 3.50 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) "Mortgage rates moved up for the second week in a row on concerns about a pick up in inflation showing up in raw materials," said Frank Nothaft, Freddie Mac vice president and chief economist. "However, a broader measure of inflation, the Consumer Price Index (CPI), posted a less than expected rise in inflation, causing bond yields to fall. This means that next week's survey results may retreat to prior levels of a week or two ago. "Sales of existing homes in January are expected to be a little lower than they were in the previous months, but continuing low interest rates will keep the housing sector active for some time to come." |
