McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.21 percent, with an average 0.5 point, for the week ending June 13, 2003, falling from 5.26 percent last week. Last year at this time, the 30-year FRM averaged 6.71 percent.
This figure sets yet another record low.
The average for the 15-year FRM this week is 4.60 percent, with an average 0.5 point, down from last week's average of 4.66 percent. A year ago, the 15-year FRM averaged 6.17 percent. This figure also sets another record low.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.54 percent this week, with an average 0.6 point, down from last week's average of 3.59 percent. At this time last year, the one-year ARM averaged 4.67 percent. This figure is another record low.
"Treasury rates continued to drop this week to 45-year lows in anticipation that the Fed may cut rates given the continuous weakness in the economy and the absence of any inflationary pressures," said Frank Nothaft, Freddie Mac chief economist. "Mortgage rates, following bond yields, also continued to fall to yet another record low.
"Because of the drop in rates since last month, we have raised our forecast for origination volume for 2003 to almost $3.3 trillion in expectation of higher home sales and greater refinancing levels."