Freddie Mac Weekly Survey Finds Mortgage Rates Up Slightly From Record Lows
August 2, 2002
Continued Volatility Makes Forecasting Problematic
McLEAN, VA-- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.43 percent, with an average 0.6 point, for the week ending August 2, 2002, up from 6.34 percent last week. Last year at this time, the 30-year FRM averaged 7.00 percent.
The average for the 15-year FRM this week is 5.84 percent, with an average 0.6 point, up from last week?s average of 5.76 percent. A year ago, the 15-year FRM averaged 6.54 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.45 percent this week, with an average 0.6 point, rising from last week?s average of 4.31 percent. This time last year, the one-year ARM averaged 5.77 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"As the stock market rallied this week, investors pulled some money out of Treasuries, pushing up bond yields. This resulted in slightly higher interest rates," said Frank Nothaft, Freddie Mac chief economist. "But as an offset, Gross Domestic Product for the second quarter came out this week showing weaker than expected growth in the economy. Other recently released indicators also suggest slowing growth in July. All of this reduces the risk of inflation and should lessen the upward pressure on interest rates.
"However, there is so much volatility in the market right now, the situation could easily change at any time, making it difficult to predict where mortgage rates will next week."
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Source: Freddie Mac