Mortgage Rate Decline Continues According To Freddie Mac Weekly Survey
June 28, 2002
One-Year Adjustable Rate Barely Budges
McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.55 percent, with an average 0.5 point, for the week ending June 28, 2002, dropping from 6.63 percent last week. Last year at this time, the 30-year FRM averaged 7.11 percent. The 30-year FRM is approaching its recent low-point, 6.51 percent, hit the week ending November 16, 2001.
The average for the 15-year FRM this week is 5.99 percent, with an average 0.5 point, down from last week?s average of 6.08 percent. A year ago, the 15-year FRM averaged 6.63 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.61 percent this week, with an average 0.4 point, up from last week?s average of 4.60 percent. This time last year, the one-year ARM averaged 5.77 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Corporate accounting concerns caused fierce investor buying of U.S. Treasury bonds, thereby lowering their yields. Other long-term interest rates followed in suit bringing fixed-rate mortgage rates within a slim margin of their 30-year record low set last November," said Frank Nothaft, Freddie Mac?s chief economist.
"Low mortgage rates have kept the housing market vibrant with activity. New home sales hit an all-time record in May, and more recently, refinancings rose to about half of new mortgage originations last week," added Nothaft.
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Source: Freddie Mac