Mortgage Rates Stay Below Six Percent For Sixth Consecutive Week
May 13, 2005
McLean, VA –Results of Freddie Mac (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM) found that the 30-year fixed-rate mortgage (FRM) averaged 5.77 percent, with an average 0.5 point, for the week ending May 12, 2005, up slightly from last week when it averaged 5.75 percent. Last year at this time, the 30-year FRM averaged 6.34 percent.
The average for the 15-year FRM this week is 5.33 percent, with an average 0.6 point, also up slightly from last week when it averaged 5.31 percent. A year ago, the 15-year FRM averaged 5.72 percent.
Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.21 percent this week, with an average 0.6 point, rising from 5.16 percent 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 4.23 percent this week, with an average 0.6 point, up very slightly from last week when it averaged 4.22 percent. At this time last year, the one-year ARM averaged 3.90 percent.
"According to the Mortgage Bankers Association, purchase applications hit a record high last week, and this can be directly attributed to continuing low mortgage rates," said Frank Nothaft, vice president and chief economist. "The bond market isn’t exactly sure how fast or slow the economy will expand in the long term and thus bond yields have remained remarkable low.
"Hence, we expect mortgage rates to remain relatively low for the time being."
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Source: Freddie Mac