Long-Term Mortgage Rates Continue To Decline As Inflation Fears Subside
April 19, 2002
McLean, VA ? In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.94 percent, with an average 0.7 point, for the week ending April 19, 2002, down from 6.99 percent last week. Last year at this time, the 30-year FRM averaged 7.14 percent.
The average for the 15-year FRM this week is 6.42 percent, with an average 0.7 point, slipping from last week's average of 6.49 percent. A year ago, the 15-year FRM averaged 6.66 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.95 percent this week, with an average 0.7 point, down from last week's average of 5.00 percent. This time last year, the one-year ARM averaged 6.08 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Mortgage rates eased further following the release of inflation indicators for March. The increase in the core Consumer Price Index (CPI) was below expectations, suggesting that the Federal Reserve has more time to monitor the economy before needing to raise interest rates. This should keep mortgage rates low and affordable to many families," said Frank Nothaft, Freddie Mac's chief economist.
"Although new housing construction slowed in March, it remains above the strong pace set last year. There is no doubt that the economy is expanding, which Fed Chairman Greenspan confirmed in his testimony on Wednesday. He also pointed out that the risk of a national housing bubble is quite unlikely, keeping housing as a strong foundation to growth in the economy."
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Source: Freddie Mac