Industry News

Lack Of Activity In Financial Markets Helps Push Fixed-Rate Mortgages To Five-Week Low

January 11, 2002

One-Year ARM Is Unmoved From Previous Week's Average

McLean, VA ? In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 7.06 percent, with an average 0.8 point, for the week ending January 11, 2002, down from 7.14 percent last week. A year ago, the 30-year FRM average was 6.89 percent.

The average for the 15-year FRM this week is 6.55 percent, with an average 0.7 point, falling from last week when the 15-year FRM averaged 6.62 percent. A year ago, the 15-year FRM averaged 6.49 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 5.26 percent this week, with an average 0.8 point, unchanged from last week?s average of 5.26 percent. This time last year, the one-year ARM averaged 6.65 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"Feeling more comfortable about the upcoming economic rebound, the financial markets relaxed a bit this week," said Frank Nothaft, Freddie Mac chief economist. "With the market more settled this week, interest rates on fixed-rate mortgages eased this to the lowest rate in five weeks.

"Low mortgage rates continue to keep the housing industry buoyant. As a matter of fact, the Mortgage Bankers Association of America?s most recent report on mortgage applications showed the number of applications for home purchases to be at an all-time high, suggesting strong home sales for the next few months. And although mortgage originations will not be as strong as last year, all indications continue to point to a strong year for home purchases."

Source: Freddie Mac

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