Fixed-rate Mortgage Rates Flat This Week
November 18, 2005
McLean, VA – Freddie Mac (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM) found the 30-year fixed-rate mortgage (FRM) averaged 6.37 percent, with an average 0.6 point, for the week ending November 17, 2005, up very slightly from last week's average of 6.36 percent. Last year at this time, the 30-year FRM averaged 5.74 percent.
The average for the 15-year FRM this week is 5.90 percent, with an average 0.6 point, also up very slightly from last week when it averaged 5.89 percent. A year ago, the 15-year FRM averaged 5.15 percent
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.86 percent this week, with an average 0.6 point, up from last week when it averaged 5.81 percent. There is no annual historical information for last year since Freddie Mac only began tracking this mortgage rate at the start of this year.
One-year Treasury-indexed ARMs averaged 5.20 percent this week, with an average 0.6 point, up from last week when it averaged 5.12 percent. At this time last year, the one-year ARM averaged 4.17 percent.
"Recently released inflation indicators – the Consumer Price Index (CPI) and Producer Price Index (PPI) – brought down long term bond yields, flattening out the yield curve," said Frank Nothaft, Freddie Mac vice president and chief economist. "Consequently, the difference between the 30-year fixed-rate mortgage and the one-year ARM rate is the narrowest it has been since November of 2001. This will make the one-year ARM product much less attractive to borrowers.
"Nevertheless, it's good to keep in mind that current mortgage rates, overall, are still below the 1990's average of around eight percent for a 30-year fixed-rate mortgage and six percent for the one-year ARM."
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Source: Freddie Mac