American Land Title Association
Home  >  News Room
News Room


SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software


Gradual Rising Rates Will Help Cool Housing Market In The Future

September 23, 2005

2005 Still On Track To Be A Record Year For Housing Sales And Starts

McLean, VA – Freddie Mac's (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM) found that mortgage rates rose slighly this week. According to the survey, the 30-year fixed-rate mortgage (FRM) averaged 5.80 percent, with an average 0.6 point, for the week ending September 22, 2005, up from last week when it averaged 5.74 percent. Last year at this time, the 30-year FRM averaged 5.70 percent.

The average for the 15-year FRM this week is 5.37 percent, with an average 0.7 point, up from last week when it averaged 5.32 percent. A year ago, the 15-year FRM averaged 5.10 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.31 percent this week, with an average 0.8 point, up from last week when it averaged 5.26 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 4.48 percent this week, with an average 0.7 point, up slightly from last week when it averaged 4.46 percent. At this time last year, the one-year ARM averaged 4.00 percent.

"Mortgage rates look like they are back on track where the Fed wants them, which is gradually rising," said Frank Nothaft, vice president and chief economist at Freddie Mac. "Freddie Mac's economic forecast calls for a cooling of the housing market going into next year, and gently rising rates are part of that scenario.

"However, the resiliency of the housing sector continues to amaze. Mortgage applications are running at a strong pace, according to the Mortgage Bankers Association, and the most recent housing starts figures, although coming in lower than expected, were still at near record levels. 2005 will be another banner year for the housing industry."

The National Mortgage Rate Snapshop
This Week One Week Ago One Year Ago
30-Yr 15-Yr 5-Yr
ARM
1-Yr ARM
5.80 5.37 5.31 4.48
0.6 0.7 0.8 0.7
30-Yr 15-Yr 5-Yr
ARM
1-Yr ARM
5.74 5.32 5.26 4.46
0.6 0.6 0.6 0.6
30-Yr 15-Yr 5-Yr
ARM
1-Yr ARM
5.70 5.10 --- 4.00

0.7

0.7 ---

0.7



Source: Freddie Mac



Print Friendly


How To Find Us:
American Land Title Association
1828 L Street, NW, Suite 705
Washington, DC 20036-5104
P. 202.296.3671 F. 202.223.5843
www.alta.org
service@alta.org
Copyright © 2004-2014 American Land Title Association. All rights reserved.
SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment