Fixed-rate Mortgage Rates Continue To Ease As Housing Starts Reach Record Levels In August
September 24, 2004
ARM Rates Dip Slightly As Well
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 5.70 percent, with an average 0.7 points, for the week ending September 23, 2004, down from last week when it averaged 5.75 percent. Last year at this time, the 30-year FRM averaged 6.01 percent.
The average for the 15-year FRM this week is 5.10 percent, with an average 0.7 points, also down from last week when it averaged 5.13 percent. A year ago, the 15-year FRM averaged 5.30 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.00 percent this week, with an average 0.7 point, down from last week when it averaged 4.03 percent. At this time last year, the one-year ARM averaged 3.81 percent.
“This new millennium has proven to be very homeowner friendly. For instance, in the last four years we have set records in housing starts, housing sales, low mortgage rates, refinancing volumes and total mortgage originations,” said Frank Nothaft, Freddie Mac vice president and chief economist. “As a matter of fact, low mortgage rates in August led to housing starts in that month that were the second highest in over two decades.
“Our Primary Mortgage Market Survey results this week show mortgage rates slipping again, which will all but guarantee that the housing industry will continue at its robust pace and set yet again, another record for both new construction and overall home sales.”
Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to create a continuous flow of funds to mortgage lenders in support of homeownership and rental housing. Freddie Mac purchases mortgages from lenders and packages them into securities that are sold to investors. Over the years, Freddie Mac has made home possible for one in six homebuyers in America.
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Source: Freddie Mac