Recent Fed Actions Allow Mortgage Rates To Ease Slightly
December 16, 2005
McLean, VA – Results of the Freddie Mac (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM) found the 30-year fixed-rate mortgage (FRM) averaged 6.30 percent, with an average 0.5 point, for the week ending December 15, 2005, down from last week’s average of 6.32 percent. Last year at this time, the 30-year FRM averaged 5.68 percent.
The average for the 15-year FRM this week is 5.85 percent, with an average 0.5 point, down from last week’s average of 5.87 percent. A year ago, the 15-year FRM averaged 5.11 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.77 percent this week, with an average 0.5 point, down slightly from last week when it averaged 5.78 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 5.15 percent this week, with an average 0.6 point, down slightly from last week when it averaged 5.16 percent. At this time last year, the one-year ARM averaged 4.18 percent.
“Earlier in the week, interest rates were a bit higher, as financial markets were a little anxious about what language the Federal Reserve (Fed) would use in its statement this month,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“When the Fed signaled that its interest rate tightening may be coming to an end soon, the financial market breathed a sigh of relief, and rates eased somewhat.
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Source: Freddie Mac