Fixed Rate Mortgage Rates Inch Higher, Arms Climb More Steeply In Latest Freddie Mac Survey
November 12, 2004
Outlook For Housing Industry Remains Rosy
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 5.76 percent, with an average 0.7 points, for the week ending November 11, 2004, up from last week when it averaged 5.70 percent. Last year at this time, the 30-year FRM averaged 5.98 percent.
The average for the 15-year FRM this week is 5.16 percent, with an average 0.7 points, also up from last week when it averaged 5.08 percent. A year ago, the 15-year FRM averaged 5.31 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.16 percent this week, with an average 0.6 point, up from last week when it averaged 4.00 percent. At this time last year, the one-year ARM averaged 3.73 percent.
“October’s fervent job growth statistics, mixed with upward revisions in previous months, led financial markets to believe the economy is picking up steam. A large number of people reentered the workforce, leading to an uptick in the national unemployment rate to 5.5 percent, which we expect will ease back to 5.4 percent before the year is out,” said Freddie Mac Vice President and Chief Economist Frank Nothaft.
“The end result translates into higher long-term mortgage rates this week. Adjustable-rate mortgages (ARMs) were more strongly affected by the latest Federal Reserve (Fed) rate hike this week. However, mortgage rates continue to be extremely affordable and the outlook for the housing sector appears bright.”
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Source: Freddie Mac