|
|  |
|
|
|
Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market SurveySM (PMMSSM) in which the 30-year fixed-rate mortgage (FRM) averaged 5.77 percent, with an average 0.5 point, for the week ending July 28, 2005, up from last week when it averaged 5.73 percent. Last year at this time, the 30-year FRM averaged 6.08 percent.
The average for the 15-year FRM this week is 5.34 percent, with an average 0.5 point, up from last week when it averaged 5.32 percent. A year ago, the 15-year FRM averaged 5.49 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.27 percent this week, with an average 0.6 point, up slightly from last week when it averaged 5.26 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 4.46 percent this week, with an average 0.6 point, up from last week when it averaged 4.42 percent. At this time last year, the one-year ARM averaged 4.17 percent. The last time the one-year ARM was higher was the week ending July 19, 2002, when it averaged 4.50 percent.
"Although inching upwards, the average 30-year fixed-rate mortgage rate for the month of July was lower than the annual averages since our survey began in 1971," said Frank Nothaft, vice president and chief economist at Freddie Mac. "And the most recent figures for housing sales are reflective of these low interest rates in the mortgage industry."
"Currently, we are experiencing a rather flat yield curve. As a result, ARMs mortgages will probably become less popular because the uncertainty of future monthly payments may outweigh the savings realized in the initial rate period."
|
|
