Quiet Markets Contribute To Keeping Mortgage Rates Low
January 25, 2002
One-Year ARM Is Barely Changed From Previous Week
McLean, VA ? In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.96 percent, with an average 0.7 point, for the week ending January 25, 2002, up from 6.83 percent last week. Last year at this time, the 30-year FRM averaged 7.15 percent.
The average for the 15-year FRM this week is 6.44 percent, with an average 0.7 point, rising from last week's average of 6.31 percent. A year ago, the 15-year FRM averaged 6.70 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 5.10 percent this week, with an average 0.7 point, up slightly from last week's average of 5.08 percent. This time last year, the one-year ARM averaged 6.64 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"There was no news this week that would drive mortgage rates in one direction or the other," said Frank Nothaft, Freddie Mac chief economist. "Therefore, mortgage rates didn't have much reason to move a lot, staying below 7 percent for the second week running.
"For 2002, we still don't anticipate any sharp rise in mortgage rates in the coming months. Our forecast is for rates to hover around 7 percent to 7¼ percent in the new year as the economy heads into recovery. We fully expect the housing sector of the economy to continue to thrive in 2002, with originations reaching perhaps as high as $1.4 trillion."
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Source: Freddie Mac