Mortgage Rates Up Again In Freddie Mac Weekly Survey
October 14, 2005
Housing Sales Will Reach Record Levels This Year
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 6.03 percent, with an average 0.6 point, for the week ending October 13, 2005, up from last week's average of 5.98 percent. Last year at this time, the 30-year FRM averaged 5.74 percent. This is the highest the 30-year FRM has been since March 31 when it averaged 6.04 percent.
The average for the 15-year FRM this week is 5.62 percent, with an average 0.6 point, up from last week when it averaged 5.54 percent. A year ago, the 15-year FRM averaged 5.14 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.57 percent this week, with an average 0.7 point, up from last week when it averaged 5.48 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 4.85 percent this week, with an average 0.6 point, up from last week when it averaged 4.77 percent. At this time last year, the one-year ARM averaged 4.01 percent.
"In spite of the job losses caused by Hurricanes Katrina and Rita, the employment report was better than had been expected," said Frank Nothaft, Freddie Mac vice president and chief economist. "This indicates that economic growth is likely to accelerate in 2006. That acceleration of growth, coupled with the specter of higher energy costs, will translate into higher long-term mortgage rates in the coming months. Mortgage rates are projected to rise gradually over the next year, with the 30-year FRM expected to hover around six percent through 2005, and reach 6.4 percent by 2006.
"Still, although mortgage rates have been rising for the last several weeks, they still remain historically very affordable and home sales this year will most certainly be at record high levels."
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Source: Freddie Mac