Long-Term Mortgages Set Yet Another Record Low In Freddie mac Weekly Survey
September 6, 2002
One-Year ARM Is Basically Unchanged From Last Week
McLean, VA – In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.15 percent, with an average 0.6 point, for the week ending September 6, 2002, slipping from 6.22 percent last week. Last year at this time, the 30-year FRM averaged 6.89 percent. This is the lowest the 30-year FRM has been since Freddie Mac began its survey in April of 1971.
The average for the 15-year FRM this week is 5.56 percent, with an average 0.6 point, down from last week's average of 5.64 percent. A year ago, the 15-year FRM averaged 6.44 percent. This is the lowest 15-year FRM has been since Freddie Mac began tracking that rate in August of 1991.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.35 percent this week, with an average 0.6 point, almost unchanged from last week's average of 4.34 percent. This time last year, the one-year ARM averaged 5.64 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Looking for safety from the current uneasiness in domestic and foreign markets, nervous investors pumped their money into the US Treasury bond market causing yields to fall to record levels," said Frank Nothaft, Freddie Mac chief economist. "Mortgage rates followed, dropping to yet another historic low.
"It's no wonder we've seen record home sales. Housing appreciation continues to out pace inflation and mortgage rates are at the lowest levels in more than a generation. These factors combined make homeownership even more attractive and affordable."
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Source: Freddie Mac