Fixed-Rate Mortgage Rates Lowest In Almost Six Months
May 3, 2002
All Interest Rates Are Down For The Fifth Consecutive Week
McLean, VA ? In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.78 percent, with an average 0.7 point, for the week ending May 3, 2002, down from 6.88 percent last week. Last year at this time, the 30-year FRM averaged 7.14 percent. The 30-year FRM has not been lower since the week ending November 23, 2001, when it averaged 6.75 percent.
The average for the 15-year FRM this week is 6.26 percent, with an average 0.7 point, dropping from last week's average of 6.35 percent. A year ago, the 15-year FRM averaged 6.66 percent. The 15-year FRM has not been lower since the week ending November 23, 2001, when it averaged 6.24 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.75 percent this week, with an average 0.8 point, down from last week's average of 4.91 percent. This time last year, the one-year ARM averaged 6.00 percent. The 1-year ARM has not been lower since the week ending April 1, 1994, when it averaged 4.65 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"There seems to be some concern in the marketplace that the economic recovery will be slower than expected, lessening the fear of inflation. This, of course, allowed mortgage rates to drift further downward this week," said Frank Nothaft, Freddie Mac's chief economist. "As a matter of fact, Personal Income and Consumer Spending growth for the first quarter were moderate and showed inflation to be well constrained.
"And with mortgage rates at phenomenally low levels - close to 30-year lows - housing will continue to contribute to a healthy economy. Although the economy most certainly will slow from the fast pace it set in the first quarter, 2002 will still be a very good year."
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Source: Freddie Mac