Long-Term Mortgage Rates Continue Trek Down While Adjustable Rate Loan Inches Higher, According To Freddie Mac Weekly Survey
July 12, 2002
McLean, VA ? In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.54 percent, with an average 0.5 point, for the week ending July 12, 2002, falling slightly from 6.57 percent last week. Last year at this time, the 30-year FRM averaged 7.21 percent.
The average for the 15-year FRM this week is 6.00 percent, with an average 0.5 point, down from last week's average of 6.03 percent. A year ago, the 15-year FRM averaged 6.76 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.66 percent this week, with an average 0.5 point, up from last week's average of 4.58 percent. This time last year, the one-year ARM averaged 5.79 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"The current uncertainty of corporate governance caused huge transfers of money into more stable and safer assets. Large money manager's shifted their investments into bonds, thereby lowering their yields and allowing mortgage rates to follow," said Frank Nothaft, Freddie Mac's Chief Economist.
"Consumers, meanwhile, reallocated some of their wealth into housing, prompting strong home sales over the last few months. Mortgage rates currently are about the same as post-September 11 levels which were a generational low. As a result, we are forecasting a new record number of total home sales and heavy refinancing activity for the year.
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Source: Freddie Mac