One-Year ARM At Highest Rate In Almost Three Years
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 5.73 percent, with an average 0.4 point, for the week ending July 21, 2005, up from last week when it averaged 5.66 percent. Last year at this time, the 30-year FRM averaged 5.98 percent. The average for the 15-year FRM this week is 5.32 percent, with an average 0.4 point, up from last week when it averaged 5.25 percent. A year ago, the 15-year FRM averaged 5.39 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.26 percent this week, with an average 0.5 point, up from last week when it averaged 5.15 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 4.42 percent this week, with an average 0.6 point, up from last week when it averaged 4.39 percent. At this time last year, the one-year ARM averaged 4.12 percent. The last time the one-year ARM was higher was the week ending August 2, 2002 when it averaged 4.45 percent. "As the one-year ARM reaches its highest interest rate level in almost three years, it comes as no surprise that the ARM share, based on number of applications for a mortgage, has fallen noticeably since the beginning of June," said Frank Nothaft, vice president and chief economist at Freddie Mac. "And even though long-term rates rose for the third consecutive week, they still remain below six percent -- still relatively close to the phenomenally low rates we experienced in June of 2003." "We believe that the housing industry, although poised to ease a bit, will still continue to bustle as the economy continues to expand steadily and long-term rates remain affordable." |
