Long-term Mortgage Rates Slip This Week
September 17, 2004
Freddie Mac Foresees Only A Slight Increase In Rates Over The Year
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.75 percent, with an average 0.8 points, for the week ending September 16, 2004, down from last week when it averaged 5.83 percent. Last year at this time, the 30-year FRM averaged 6.16 percent.
The average for the 15-year FRM this week is 5.13 percent, with an average 0.8 points, also down from last week when it averaged 5.22 percent. A year ago, the 15-year FRM averaged 5.46 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.03 percent this week, with an average 0.7 point, up from last week when it averaged 4.00 percent. At this time last year, the one-year ARM averaged 3.87 percent.
“The Consumer Price Index figures released this morning showed that the run up in oil prices has not been inflationary at the consumer level, much to the relief of mortgage lenders,” said Frank Nothaft, Freddie Mac vice president and chief economist. “And price stability in products other than oil have allowed for more money to go toward home buying and home projects.
“Next week the policy committee of the Federal Reserve will meet and our expectation is that it will raise short-term rates by a quarter of a percent. However, we also don’t see this increase as having a significant impact on long-term mortgage rates.”
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Source: Freddie Mac