Long-Term Mortgage Rates Fall Again, Setting Yet Another New Record
September 20, 2002
McLean, VA – In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.05 percent, with an average 0.7 point, for the week ending September 20, 2002, falling from 6.18 percent last week. Last year at this time, the 30-year FRM averaged 6.80 percent. This is the lowest the 30-year FRM has been since Freddie Mac began tracking it in 1971.
The average for the 15-year FRM this week is 5.47 percent, with an average 0.7 point, down from last week's average of 5.59 percent. A year ago, the 15-year FRM averaged 6.30 percent. This is the lowest the 15-year FRM has been since Freddie Mac started recording it in 1991.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.28 percent this week, with an average 0.7 point, down from last week's average of 4.32 percent. This time last year, the one-year ARM averaged 5.58 percent. This is the lowest the 1-year ARM has been since the week ending February 25,1994, when it was 4.25 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Concern over weaker consumer confidence and industrial production outweighed the pick-up in retail sales and business inventories causing interest rates to decline even further this week," said Frank Nothaft, Freddie Mac chief economist. "Adding to the decline was a flight-to-quality in the bond market from nervous investors worried about falling stock prices and the possibility of war in the Middle East.
"As a result, long-term mortgage rates fell again to new historic lows ensuring that the refinancing boom will continue and that the housing sector of the economy will remain vibrant into the chilly Autumn months."
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Source: Freddie Mac