Fixed-Rate Mortgage Rates Flat, Finds Freddie Mac Weekly Survey
June 14, 2002
One-Year Adjustable Rate Drops Slightly
McLean, VA ? In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.71 percent, with an average 0.7 point, for the week ending June 14, 2002, unchanged from 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 6.17 percent, with an average 0.6 point, almost unchanged from last week's average of 6.18 percent. A year ago, the 15-year FRM averaged 6.70 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.67 percent this week, with an average 0.7 point, down from last week's average of 4.71 percent. This time last year, the one-year ARM averaged 5.82 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"There is a slight chance the Federal Reserve Board will raise rates when it meets later this month, but with the current labor market and slowing consumer spending, it is more likely that it will take no action until August at the earliest," said Frank Nothaft, Freddie Mac's chief economist. "As a result, short term interest rates such as the one-year adjustable rate mortgage (ARM) drifted further downward this week.
"As the ARM rates fall lower and become more attractive, homeowners may decide it's worth it to refinance from a fixed-rate loan into an adjustable rate mortgage to reduce their monthly mortgage payment in the short term. For instance, during the first year of a one-year ARM, owners could potentially save over $2,000 a year on a $150,000 loan balance at today's rates."
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Source: Freddie Mac
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