Mortgage Rates Drop For The First Time In Seven Weeks
April 8, 2005
Both Long- And Short-Term Rates Slip
McLean, VA – Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage Market SurveySM (PMMSSM) in which the 30-year fixed-rate mortgage (FRM) averaged 5.93 percent, with an average 0.7 points, for the week ending April 7, 2005, down from last week when it averaged 6.04 percent. Last year at this time, the 30-year FRM averaged 5.79 percent.
The average for the 15-year FRM this week is 5.48 percent, with an average 0.7 points, down from last week when it averaged 5.58 percent. A year ago, the 15-year FRM averaged 5.12 percent.
Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.33 percent this week, with an average 0.7 points, down from 5.43 last week. 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 adjustable-rate mortgages (ARMs) averaged 4.23 percent this week, with an average 0.7 point, down from last week when it averaged 4.33 percent. At this time last year, the one-year ARM averaged 3.65 percent.
"Mortgage rates slipped this week on news that job creation in March came out much lower than had been expected," said Frank Nothaft, vice president and chief economist. "This would indicate there is less money being spent and therefore, less inflationary pressure on the economy."
"Although mortgage rates will rise this year, we expect the 2005 annual average will be below levels recorded just three years ago."
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Source: Freddie Mac