Fixed-rate Mortgages Drop To 10 Week Low In Freddie Mac Primary Mortgage Market Survey -- One Year ARM Also Falls
July 8, 2004
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.01 percent, with an average 0.6 point, for the week ending July 8, 2004, down from last week when it averaged 6.21 percent. Last year at this time, the 30-year FRM averaged 5.40 percent.
The average for the 15-year FRM this week is 5.42 percent, with an average 0.6 point, also down from last week when it averaged 5.62 percent. A year ago, the 15-year FRM averaged 4.75 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.05 percent this week, with an average 0.6 point, down from last week when it averaged 4.19 percent. At this time last year, the one-year ARM averaged 3.49 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Long-term mortgage rates this week fell to levels equal to those experienced in April, reacting in large part to last Friday's news of less than stellar job growth in June," said Frank Nothaft, Freddie Mac vice president and chief economist. "This is good news for those who are still house hunting, as lower rates mean more affordable housing.
"Meanwhile, home construction remains strong and home sales continue to break records easily. In fact, total home sales should end the year two percent higher than 2003's all time record level.
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Source: Freddie Mac