The One- and Five-Year ARMs Rise As Well
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 5.89 percent, with an average 0.5 point, for the week ending August 11, 2005, up from last week when it averaged 5.82 percent. Last year at this time, the 30-year FRM averaged 5.85 percent. The average for the 15-year FRM this week is 5.47 percent, with an average 0.6 point, up from last week when it averaged 5.38 percent. A year ago, the 15-year FRM averaged 5.24 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.40 percent this week, with an average 0.6 point, up slightly from last week when it averaged 5.30 percent. 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 ARMs averaged 4.57 percent this week, with an average 0.7 point, up from last week when it averaged 4.47 percent. At this time last year, the one-year ARM averaged 4.08 percent. "The stronger than expected employment report coupled with upward revisions in job growth for the previous two months renewed the market's fear of inflation," said Frank Nothaft, vice president and chief economist at Freddie Mac. "That's because strong job growth can put upward pressure on wages -- a key factor in inflation -- that in turn, can drive long-term rates higher." "As mortgage rates drift upward, we expect to see some moderation in housing activity. With that said, though, we still expect that 2005 will undoubtedly be a record year for sales and new construction." |
