Signs Are Promising For 2002 Housing Market As Mortgage Rates Remain Stable
January 4, 2002
Mortgage Rates Almost Unchanged For The Third Consecutive Week
McLean, VA ? In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 7.14 percent, with an average 0.8 point, for the week ending January 4, 2002, nearly unchanged from 7.16 percent last week. A year ago, the 30-year FRM average was 7.07 percent.
The average for the 15-year FRM this week is 6.62 percent, with an average 0.8 point, down slightly from last week when the 15-year FRM averaged 6.65 percent. A year ago, the 15-year FRM averaged 6.74 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 5.26 percent this week, with an average 0.9 point, up slightly from last week's average of 5.25 percent. This time last year, the one-year ARM averaged 6.86 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"2001 was an incredible year for the housing industry," said Frank Nothaft, Freddie Mac chief economist. "Low mortgage rates and strong house appreciation boosted new and existing home sales as well as refinance activity, leading to what was surely a record-breaking year for housing.
"Coming into the new year, there are some signs that the recession may have already run its course but no indications that inflation looms on the horizon. Thus, mortgage rates remained almost unchanged this week. With mortgage rates expected to stay near their current low levels, 2002 shows every promise of being another good year for housing. Mortgage lending volumes for purchase will be about the same as in 2001, but refinancing volume will decline from last year's fast pace."
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Source: Freddie Mac