Long-term Mortgage Rates Reach Six Month Low Spurring A Rise In Applications For Mortgages
October 22, 2004
One-Year ARM Hovers Around Four Percent
McLean, VA – Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.69 percent, with an average 0.7 points, for the week ending October 21, 2004, down from last week when it averaged 5.74 percent. Last year at this time, the 30-year FRM averaged 6.05 percent.
The average for the 15-year FRM this week is 5.07 percent, with an average 0.6 points, also down from last week when it averaged 5.14 percent. A year ago, the 15-year FRM averaged 5.36 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.02 percent this week, with an average 0.7 point, up slightly from last week when it averaged 4.01 percent. At this time last year, the one-year ARM averaged 3.79 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Treasury bond yields eased somewhat this week, causing long-term mortgage rates to drift a little lower from last week,” said Frank Nothaft, Freddie Mac chief economist. “Mortgage rates for 1-year adjustable-rate mortgages, however, were almost unchanged, rising only one basis point in the same time frame.
“Lower mortgage rates, in turn, caused mortgage application activity to increase last week in both the refinance and home-purchase sectors. Meanwhile, housing starts took a breather in September, following the robust pace set in August.”
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Source: Freddie Mac