Freddie Mac Survey Finds Little Change In Long-Term Mortgage Rates This Week
January 29, 2004
McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.68 percent, with an average 0.7 point, for the week ending January 29, 2004, up slightly from 5.64 percent last week. Last year at this time, the 30-year FRM averaged 5.90 percent.
The average for the 15-year FRM this week is 4.97 percent, with an average 0.7 point, up very slightly from last week's average of 4.95 percent. A year ago, the 15-year FRM averaged 5.28 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.59 percent this week, with an average 0.6 point, up also very slightly from 3.56 percent last week. At this time last year, the one-year ARM averaged 3.89 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Mortgage rates were basically unchanged leading up to the FOMC's announcement that opened the door to the possibility the Fed would raise rates sooner than expected," said Frank Nothaft, Freddie Mac's Chief Economist. "Following the policy statement, bond yields shot up, taking mortgage rates with them., raising the prospect that mortgage rates will be even higher next week.
"However, even at higher levels next week, mortgage rates remain incredibly low and affordable and shouldn't starve off the demand for housing in 2004. The real estate market, although slowing from last year's blockbuster pace, will continue to be robust this year."
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