Mortgage Rates Continue Upward Drift, According To Freddie Mac Weekly Survey
November 11, 2005
Fixed-Rate Mortgage Rates Up For Ninth Consecutive Week
McLEAN, VA --Results of Freddie Mac's (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM) found tha the 30-year fixed-rate mortgage (FRM) averaged 6.36 percent, with an average 0.5 point, for the week ending November 10, 2005, up from last week's average of 6.31 percent. Last year at this time, the 30-year FRM averaged 5.76 percent.
The average for the 15-year FRM this week is 5.89 percent, with an average 0.6 point, up from last week when it averaged 5.85 percent. A year ago, the 15-year FRM averaged 5.16 percent
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.81 percent this week, with an average 0.6 point, up 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 5.12 percent this week, with an average 0.6 point, up from last week when it averaged 5.09 percent. At this time last year, the one-year ARM averaged 4.16 percent.
"News that wages grew faster than had been expected in October reinforced fears of inflation in the financial markets, and that bumped up interest rates again this week," said Frank Nothaft, vice president and chief economist. "Consumer Price Index (CPI) and Producer Price Index (PPI) figures due out next week will help to confirm or deny whether market concerns are warranted.
"According to our most recent economic outlook, we expect rates to continue to rise gradually over the next 12 or so months. Because the housing sector is so sensitive to fluctuations in interest rates, this will have the effect of returning the housing sector to a more normal pace of activity, by historical standards."
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Source: Freddie Mac