Long-Term Mortgage Rates Drop To Lowest Level In Four Weeks, According To Freddie Mac Survey
April 12, 2002
ARM Rate Ticks Up Very Slightly From Previous Week
McLean, VA ? In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.99 percent, with an average 0.8 point, for the week ending April 12, 2002, down from 7.13 percent last week. Last year at this time, the 30-year FRM averaged 7.04 percent. The 30-year FRM has not been lower since the week ending March 8, 2002, when it averaged 6.97 percent.
The average for the 15-year FRM this week is 6.49 percent, with an average 0.8 point, slipping from last week's average of 6.64 percent. A year ago, the 15-year FRM averaged 6.55 percent. The 15-year FRM has not been lower since the week ending March 8, 2002, when it averaged 6.37 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 5.00 percent this week, with an average 0.9 point, up very slightly from last week's average of 4.99 percent. This time last year, the one-year ARM averaged 6.15 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"A shift in market perception about what action the Federal Reserve Board will take at its May meeting led to a downturn in interest rates this week," said Frank Nothaft, Freddie Mac chief economist. "Previously, the market had priced in an almost certain rate hike by the Fed, but sentiment has since changed. Consensus now is that the Fed will hold off raising rates until at least June.
"The Producer Price Index figures for March to be released on Friday will give a hint of what the Consumer Price Index will look like when it is released next week. Since mortgage rates are influenced by the threat of inflation, rates over the next few weeks will depend in great part on what these figures show."
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Source: Freddie Mac