Long-term Mortgage Rates Inch Lower In Freddie Mac Weekly Survey
July 22, 2004
One-Year ARM Reverses Trend Of Last Few Weeks And Starts To Rise
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 5.98 percent, with an average 0.6 point, for the week ending July 22, 2004, down slightly from last week when it averaged 6.00 percent. Last year at this time, the 30-year FRM averaged 5.67 percent.
The average for the 15-year FRM this week is 5.39 percent, with an average 0.6 point, down one basis point from last week when it averaged 5.40 percent. A year ago, the 15-year FRM averaged 5.00 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.12 percent this week, with an average 0.6 point, up from last week when it averaged 4.02 percent. At this time last year, the one-year ARM averaged 3.58 percent.
"Although Chairman Greenspan stated in his testimony before Congress recently that the economy may have hit a 'soft patch' in June, his outlook for the second half of the year was more upbeat than expected," said Frank Nothaft, Freddie Mac vice president and chief economist. "Stronger growth in the economy will invariably translate into higher mortgage rates in the future, particularly for ARM products. But this should be offset by job growth and by rising incomes nationwide.
"However, the rise in mortgage rates will be measured, not extreme, and that will help keep the housing industry stable and affordable in the coming months."
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Source: Freddie Mac