Mortgage Rates Continue To Rise On Inflation Jitters
October 7, 2005
30-Year FRM At Highest Level In Six Months
McLean, VA – The Freddie Mac (NYSE:FRE) results of its Primary Mortgage Market SurveySM (PMMSSM) found that the 30-year fixed-rate mortgage (FRM) averaged 5.98 percent, with an average 0.5 point, for the week ending October 6, 2005, up from last week's average of 5.91 percent. Last year at this time, the 30-year FRM averaged 5.82 percent. This is the highest the 30-year FRM has been since March 31 when it averaged 6.04 percent.
The average for the 15-year FRM this week is 5.54 percent, with an average 0.5 point, up from last week when it averaged 5.48 percent. A year ago, the 15-year FRM averaged 5.24 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.48 percent this week, with an average 0.6 point, up from last week when it averaged 5.44 percent. 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 ARMs averaged 4.77 percent this week, with an average 0.6 point, up slightly from last week when it averaged 4.68 percent. At this time last year, the one-year ARM averaged 4.08 percent.
"Mortgage rates have been rising for the last four weeks on inflation jitters caused in part by extended high energy costs. Still we need more concrete data to predict the direction of the national economy, including mortgage rates," said Frank Nothaft, Freddie Mac vice president and chief economist.
"That said, we do think that the economy will continue to grow, albeit at perhaps a slightly slower pace than in the recent past. Mortgage rates will most likely continue to rise with the expansion of the economy."
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Source: Freddie Mac