Long-Term Mortgage Rates Slip To Previous Low Says Freddie Mac Weekly Survey
August 30, 2002
Refinancing Activity Remains High
McLean, VA – In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.22 percent, with an average 0.7 point, for the week ending August 30, 2002, slipping from 6.27 percent last week. Last year at this time, the 30-year FRM averaged 6.92 percent.
The average for the 15-year FRM this week is 5.64 percent, with an average 0.7 point, edging down from last week's average of 5.71 percent. A year ago, the 15-year FRM averaged 6.47 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.34 percent this week, with an average 0.8 point, unchanged from last week's average of 4.34 percent. This time last year, the one-year ARM averaged 5.67 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"New and existing home sales for July rebounded from the lower pace that we saw in June," said Frank Nothaft, Freddie Mac chief economist. "Continued low mortgage rates open the housing market to a broader segment of the population and contribute to the on-going vitality in home sales. And, since mortgage rates are expected to remain low until the economy picks up more steam, the housing sector should stay active and healthy for some time to come.
"Most forecasters now expect 2002 to be another record year for home purchases and possibly for loan originations as well if refinancings continue to hold up through the end of the year."
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