Long-Term Mortgage Rates Reach Six Month Low In Freddie Mac Weekly Survey
May 31, 2002
1-Year ARM Capturing Greater Share Of The Market
McLean, VA ? In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.76 percent, with an average 0.8 point, for the week ending May 31, 2002, slipping from 6.81 percent last week. Last year at this time, the 30-year FRM averaged 7.24 percent. The 30-year FRM has not been this low since the week ending November 23, 2001, when it averaged 6.75 percent.
The average for the 15-year FRM this week is 6.22 percent, with an average 0.8 point, dropping from last week's average of 6.28 percent. A year ago, the 15-year FRM averaged 6.78 percent. The 15-year FRM has not been this low since the week ending November 16, 2001, when it averaged 5.98 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.76 percent this week, with an average 0.7 point, down from last week's average of 4.85 percent. This time last year, the one-year ARM averaged 5.89 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Slower economic growth this quarter and little or no inflation worries allowed rates to drift downward these last few weeks to the benefit of homebuyers. As a matter of fact, low mortgage rates induced an unexpectedly high level of new and existing home sales last month," said Frank Nothaft, Freddie Mac's chief economist.
"And interest in the 1-year ARMs has been rekindled, as the ARM rates of the last few months rival those of six years ago. The 1-year ARM share of the market has risen to nearly 20 percent in April. At the same time last year, 1-year ARMs accounted for only 10 percent of the market."
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Source: Freddie Mac