Freddie Mac Survey Finds Another Week Of Upward Drifting Mortgage Rates
March 11, 2005
Both Long- And Short-Term Rates Experience A Rise
McLean, VA – Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.85 percent, with an average 0.6 points, for the week ending March 10, 2005, up from last week when it averaged 5.79 percent. Last year at this time, the 30-year FRM averaged 5.41 percent.
The average for the 15-year FRM this week is 5.38 percent, with an average 0.6 points, up from last week when it averaged 5.33 percent. A year ago, the 15-year FRM averaged 4.69 percent.
Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.22 percent this week, with an average 0.6 points, up from 5.17 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 4.24 percent this week, with an average 0.7 point, up from last week when it averaged 4.14 percent. At this time last year, the one-year ARM averaged 3.41 percent.
"Last Friday’s employment report reinforced the perception that the economy is on sure footing, leading bond markets to push interest rates higher again this week," said Amy Crews Cutts, Freddie Mac deputy chief economist. "Although inflation remains tame, the recent spike in oil prices does put inflationary pressures on the economy and was an additional factor causing higher interest rates.
"Even with rising mortgage rates over the last four weeks, 30-year fixed-rate mortgage rates remain an historical bargain. To date, contract rates for these mortgages have been below six percent for 31 weeks in a row, and we don’t expect these rates will rise very much above 6¼ percent by year end."
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Source: Freddie Mac