Long-term Mortgage Rates Inch Downward As Short-term Rates Head In The Opposite Direction

July 1, 2004

Housing Sector Expected To Remain Healthy

McLean, VA – In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.21 percent, with an average 0.6 point, for the week ending July 1, 2004, down from last week when it averaged 6.25 percent. Last year at this time, the 30-year FRM averaged 5.24 percent.

The average for the 15-year FRM this week is 5.62 percent, with an average 0.6 point, also down slightly from last week when it averaged 5.64 percent. A year ago, the 15-year FRM averaged 4.63 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.19 percent this week, with an average 0.7 point, up from last week when it averaged 4.13 percent. At this time last year, the one-year ARM averaged 3.45 percent.

"As expected, long-term mortgage rates were relatively unaffected by the Fed’s recent actions to preempt any future inflationary trend. And, as also expected, short-term mortgage rates moved upward in response to those same actions,” said Frank Nothaft, Freddie Mac vice president and chief economist.

"Although we anticipate a moderation in the housing sector at some future point, with the economy picking up steam and mortgage rates still low by historical standards, the housing market will remain buoyant for at least the rest of the year,” added Nothaft.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to create a continuous flow of funds to mortgage lenders in support of homeownership and rental housing. Freddie Mac purchases mortgages from lenders and packages them into securities that are sold to investors. Over the years, Freddie Mac has opened doors for one in six homebuyers in America.

The National Mortgage Rate Snapshop
This Week One Week Ago One Year Ago
30-Yr 15-Yr 1-Yr ARM


0.6 0.6 0.7
30-Yr 15-Yr 1-Yr ARM


0.6 0.6 0.7
30-Yr 15-Yr 1-Yr ARM
5.21 4.63 3.45



Source: Freddie Mac

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