Long-term Mortgage Rates Drop For The Ninth Week Out Of The Last Ten
June 3, 2005
Housing Remains Strong Part Of The National Economy
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market SurveySM (PMMSSM) in which the 30-year, fixed-rate mortgage (FRM) averaged 5.62 percent, with an average 0.6 point, for the week ending June 2, 2005, down from last week when it averaged 5.65 percent. Last year at this time, the 30-year FRM averaged 6.28 percent.
The average for the 15-year FRM this week is 5.20 percent, with an average 0.6 point, also down slightly from last week when it averaged 5.21 percent. A year ago, the 15-year FRM averaged 5.63 percent.
Five-Year, Treasury-indexed, hybrid adjustable-rate mortgages (ARMs) averaged 5.10 percent this week, with an average 0.5 point, up from last week when it averaged 5.07 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 4.26 percent this week, with an average 0.6 point, up from last week when it averaged 4.21 percent. At this time last year, the one-year ARM averaged 3.98 percent.
“Improvements in the job market and rising wages will likely put upward pressure on mortgage rates in the coming months,” said Frank Nothaft, Freddie Mac vice president and chief economist. “However, the same growth in income will partially offset any rise in rates, enabling housing to continue to be a healthy industry.
“Given the low rates we experienced last month, we expect home sales in May will remain strong.”
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Source: Freddie Mac