New Year Rings In With Lower Mortgage Rates
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 5.77 percent, with an average 0.7 points, for the week ending January 6, 2005, down from last week when it averaged 5.81 percent. Last year at this time, the 30-year FRM averaged 5.87 percent. The average for the 15-year FRM this week is 5.21 percent, with an average 0.6 points, down from last week when it averaged 5.23 percent. A year ago, the 15-year FRM averaged 5.17 percent. Five-Year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 5.03 percent this week, with an average 0.5 points. One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.10 percent this week, with an average 0.7 point, down from last week when it averaged 4.19 percent. At this time last year, the one-year ARM averaged 3.76 percent. "Economic news seems to reflect steady growth and low inflation, placing little upward pressure on interest rates," said Amy Crews Cutts, Freddie Mac deputy chief economist. "Although we expect mortgage rates will start to trend gently upward over the year, 30-year fixed mortgage rates should stay under six percent, at least through the first quarter. "Also, our annual ARM survey confirmed that the market for hybrid ARM products has grown large enough for us to track the direction this market segment is taking. Therefore, starting this week we are adding a 5/1 ARM series to the Primary Mortgage Market Survey (PMMS)." |
