30-year Mortgage Rates At Second Lowest Annual Average In 32 Years Of Freddie Mac Survey
January 7, 2005
Housing Outlook Remains Rosy For 2005
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 5.81 percent, with an average 0.6 points, for the week ending December 30, 2004, up from last week when it averaged 5.75 percent. Last year at this time, the 30-year FRM averaged 5.85 percent.
The average for the 15-year FRM this week is 5.23 percent, with an average 0.6 points, up from last week when it averaged 5.18 percent. A year ago, the 15-year FRM averaged 5.15 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.19 percent this week, with an average 0.6 point, up slightly from last week when it averaged 4.17 percent. At this time last year, the one-year ARM averaged 3.72 percent.
“The 30-year FRM came in under six percent for the last 22 weeks of this year. As a matter of fact, mortgage rates in 2004 averaged around 5.84 percent, the second lowest annual rate ever recorded in the history of Freddie Mac’s Primary Mortgage Market Survey,” said Amy Crews Cutts, Freddie Mac deputy chief economist. “Total home sales reflected those affordable rates by setting new record-breaking high levels for the year.
“Although mortgage rates are expected to rise in 2005, it will not be to a big enough degree to take much of the steam out of the housing industry. Next year sales may drop off slightly from this year’s banner pace, but the industry will continue to be healthy and robust well into the future.”
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Source: Freddie Mac