Long- And Short-term Mortgage Rates Rise This Week
February 18, 2005
Five-Year ARM Rises For The First Time In Four Weeks
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.62 percent, with an average 0.7 points, for the week ending February 17, 2005, up from last week when it averaged 5.57 percent. Last year at this time, the 30-year FRM averaged 5.58 percent.
The average for the 15-year FRM this week is 5.14 percent, with an average 0.7 points, up from last week when it averaged 5.10 percent. A year ago, the 15-year FRM averaged 4.87 percent.
Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.05 percent this week, with an average 0.7 points, up from 4.99 last week. There is no annual historical information for last year since Freddie Mac only began tracking this mortgage rate at the start of this year.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.15 percent this week, with an average 0.8 point, up from last week when it averaged 4.11 percent. At this time last year, the one-year ARM averaged 3.53 percent.
"Mixed economic indicators can push the market up or down, depending on the timing of the release, and that's what we saw happen this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "The market seemed to focus on the positive, causing mortgage rates to inch up.
"That said, January housing starts were the highest in over 20 years, and that is based on higher rates than we are currently experiencing. All in all, the little run up in rates that occurred this week will not be enough to cause a significant slow down in current housing market activity."
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Source: Freddie Mac