Mortgage Rates Move Up A Little As The Year End Nears
December 9, 2005
2006 Outlook Continues To Be For A Slower, But Still Busy, Housing Market
McLean, VA - Results of Freddie Mac (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM) found the 30-year fixed-rate mortgage (FRM) averaged 6.32 percent, with an average 0.6 point, for the week ending December 8, 2005, up from last week's average of 6.26 percent. Last year at this time, the 30-year FRM averaged 5.71 percent.
The average for the 15-year FRM this week is 5.87 percent, with an average 0.6 point, up from last week when it also averaged 5.81 percent. A year ago, the 15-year FRM averaged 5.14 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.78 percent this week, with an average 0.7 point, up slightly from last week when it averaged 5.76 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 5.16 percent this week, with an average 0.8 point, unchanged from last week when it averaged 5.16 percent. At this time last year, the one-year ARM averaged 4.15 percent.
"Looking back at 2005, 30-year fixed rate mortgage rates averaged just about the same as they have for the last two years," said Frank Nothaft, Freddie Mac vice president and chief economist. "Since the 30-year fixed rate is the most popular mortgage product by far, these low rates helped the housing market set records for home sales and new construction over the last three years."
"Looking ahead, as mortgage rates rise housing activity will ease somewhat. So although 2006 will not be another record-setting year, it will likely beat the previous record for home sales and new construction set in 2003. In other words, 2006 will be another busy year for the housing sector."
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Source: Freddie Mac