Fixed-Rate Mortgage Rates Slide To Another New Low This Week, According To Freddie Mac Survey
August 16, 2002
One-Year ARM Rises Very Slightly
McLean, VA – In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.22 percent, with an average 0.6 point, for the week ending August 16, 2002, falling from 6.31 percent last week. Last year at this time, the 30-year FRM averaged 6.92 percent. This week's figure breaks the previous 32-year low in Freddie Mac's survey that was recorded last week.
The average for the 15-year FRM this week is 5.63 percent, with an average 0.5 point, down from last week's average of 5.69 percent. A year ago, the 15-year FRM averaged 6.48 percent. This continues to be the lowest the 15-year FRM has been since Freddie Mac started tracking it in August of 1991.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.39 percent this week, with an average 0.6 point, up slightly from last week's average of 4.37 percent. This time last year, the one-year ARM averaged 5.71 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"The Fed's acknowledgement of weakness in the economy and a flight to quality in the bond market caused fixed-rate mortgage rates to slide further," said Frank Nothaft, Freddie Mac chief economist. "And low mortgage rates certainly help offset rising home values, making housing more affordable for a larger pool of homebuyers.
"Our current forecast predicts that although mortgage rates will fluctuate over the rest of the year, fixed-rate mortgages in particular will remain at near record levels for the rest of the year."
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Source: Freddie Mac