Low Inflation Translates Into Low Long-term Mortgage Rates Says Freddie Mac's Weekly Survey

January 20, 2005

One-Year ARM Hardly Budges While Five-Year ARM Remains Unchanged

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 5.67 percent, with an average 0.7 points, for the week ending January 20, 2005, down from last week when it averaged 5.74 percent. Last year at this time, the 30-year FRM averaged 5.64 percent.

The average for the 15-year FRM this week is 5.15 percent, with an average 0.7 points, down from last week when it averaged 5.19 percent. A year ago, the 15-year FRM averaged 4.95 percent.

Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.05 percent this week, with an average 0.6 points, unchanged from last week. There is no historical information for last year since Freddie Mac began tracking this mortgage rate at the start of this year.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.11 percent this week, with an average 0.7 points, nearly unchanged from last week when it averaged 4.10 percent. At this time last year, the one-year ARM averaged 3.56 percent.

"Financial markets see inflation as being well managed by the Fed, and that allows long-term interest rates to remain low, with mortgage rates even falling a little more this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "With housing starts in December near record levels, and November starts revised upward, the housing industry looks like it will remain vibrant in 2005."

The National Mortgage Rate Snapshop
This Week One Week Ago One Year Ago
30-Yr 15-Yr 5-Yr
ARM
1-Yr ARM
5.69 5.15 5.05 4.11
0.7 00.7 0.6 0.7
30-Yr 15-Yr 5-Yr
ARM
1-Yr ARM
5.74 5.19 5.05 4.10
0.6 0.6 0.5 0.6
30-Yr 15-Yr 5-Yr
ARM
1-Yr ARM
5.64 4.95 --- 3.56
0.6 0.6 ---

0.7

Source: Freddie Mac


Contact ALTA at 202-296-3671 or communications@alta.org.

North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents. SoftPro is the nation's leading provider of closing and title software, consistently pushing the technological envelope to pioneer the most powerful and comprehensive closing and title automation software on the market. SoftPro's Award-Winning Software combines cutting-edge technology with outstanding support to make your business more productive, efficient and boost your revenue.