With Long-term Mortgage Rates At Six Month Lows, New And Existing Home Sales Will Remain Brisk Throughout The Year
October 29, 2004
One-Year ARM Sees Lowest Rate Since End Of May 2004
McLean, VA – Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.64 percent, with an average 0.7 points, for the week ending October 28, 2004, down from last week when it averaged 5.69 percent. Last year at this time, the 30-year FRM averaged 6.05 percent.
The average for the 15-year FRM this week is 5.01 percent, with an average 0.7 points, also down from last week when it averaged 5.07 percent. A year ago, the 15-year FRM averaged 5.39 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.96 percent this week, with an average 0.8 point, down from last week when it averaged 4.02 percent. At this time last year, the one-year ARM averaged 3.76 percent.
"Home sales are very sensitive to mortgage rates," said Frank Nothaft, Freddie Mac chief economist. "Low mortgage rates drove the uptick in sales during September. And with mortgage rates at their lowest level in six months, home sales should continue strong through the autumn months.
"Our latest forecast expects a brisk housing industry through year-end. Single-family building is likely to remain strong this quarter, as evidenced by the pace of recent new-home sales. Overall, the economy remains supportive of both new and existing homes."
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Source: Freddie Mac
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