Long Term Mortgage Rates Slip Lower For The Fourth Week Running
February 14, 2003
One-Year ARM Remains Unchanged And Still At A Record Low
McLean, VA - In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.86 percent, with an average 0.6 point, for the week ending February 14, 2003, down slightly from 5.88 percent last week. Last year at this time, the 30-year FRM averaged 6.86 percent.
The average for the 15-year FRM this week is 5.26 percent, with an average 0.6 point, dipping one basis point from last week's average of 5.27 percent. A year ago, the 15-year FRM averaged 6.35 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.89 percent this week, with an average 0.7 point, unchanged for the third week in a row. At the same time last year, the one-year ARM averaged 4.98 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Housing has been friendly to family budgets, which is why the housing industry has done so well in recent years," said Frank Nothaft, Freddie Mac chief economist. "Mortgage rates have held at record low levels thereby reducing mortgage payments and making home buying affordable for a greater number of families.
"Low rates have also kept the refinance market bustling and the reduced interest rate on mortgages gave homeowners about $100 more per month to spend or save last year."
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Source: Freddie Mac