Most Mortgage Rates Continue To Climb Slowly Modest Inflation Should Keep Mortgage Rates Affordable
July 22, 2005
McLean, VA – Freddie Mac's Primary Mortgage Market SurveySM (PMMSSM) revealed that the 30-year fixed-rate mortgage (FRM) averaged 5.66 percent, with an average 0.6 point, for the week ending July 14, 2005, up slightly from last week when it averaged 5.62 percent. Last year at this time, the 30-year FRM averaged 6.00 percent.
The average for the 15-year FRM this week is 5.25 percent, with an average 0.6 point, up from last week when it averaged 5.20 percent. A year ago, the 15-year FRM averaged 5.40 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.15 percent this week, with an average 0.7 point, down from last week when it averaged 5.19 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 4.39 percent this week, with an average 0.7 point, up from last week when it averaged 4.33 percent. At this time last year, the one-year ARM averaged 4.02 percent.
"Over the past few weeks, financial markets have been gearing up for greater growth in the economy, which ultimately leads to higher inflation rates. As a result, mortgage rates increased for the second straight week. Interest rates for 30-year fixed-rate mortgages now match those set in mid-May, but are still below January’s monthly average," explained Freddie Mac Vice President and Chief Economist Frank Nothaft.
"As a matter of fact, since Freddie Mac began tracking the 30-year mortgage rate in 1971, it has averaged 9.4 percent, and since 2000 it’s averaged 6.6 percent. Given that, today’s rates appear to be quite attractive and should continue to support a vibrant housing market."
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Source: Freddie Mac