McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.30 percent, with an average 0.7 point, for the week ending May 20, 2004, down from last week when it averaged 6.34 percent. Last year at this time, the 30-year FRM averaged 5.34 percent.
The average for the 15-year FRM this week is 5.67 percent, with an average 0.7 point, down from last week when it averaged 5.72 percent. A year ago, the 15-year FRM averaged 4.73 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.99 percent this week, with an average 0.6 point, up from last week when it averaged 3.90 percent. At this time last year, the one-year ARM averaged 3.61 percent.
"The rise in mortgage rates stalled this week primarily because of rising tensions in other parts of the world, causing foreign investors to flee to the security of US Treasuries," said Frank Nothaft, Freddie Mac vice president and chief economist. "Consequently, yields remained mainly unchanged from last week, and so did long-term mortgage rates.
"We continue to be confident that the housing segment of the economy will remain strong throughout this year and beyond, with mortgage rates staying low, by historical standards, and house price growth slowing but continuing to outpace inflation."