Industry News

Mortgage Rates Inch Up According To Freddie Mac Weekly Survey, But Still Remain Low And Affordable

February 1, 2002

Homeownership In 2001 Is Spurred By Low Mortgage Rates

McLean, VA ? In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 7.02 percent, with an average 0.7 point, for the week ending February 1, 2002, up from 6.96 percent last week. Last year at this time, the 30-year FRM averaged 7.09 percent.

The average for the 15-year FRM this week is 6.51 percent, with an average 0.7 point, rising from last week's average of 6.44 percent. A year ago, the 15-year FRM averaged 6.66 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 5.12 percent this week, with an average 0.7 point, up slightly from last week's average of 5.10 percent. This time last year, the one-year ARM averaged 6.54 percent.

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

"In 2001, homeownership rose to an all-time record of 67.8 percent of the population, fueled by low mortgage rates," said Frank Nothaft, Freddie Mac chief economist. "Last year, mortgage rates were low and stable, averaging 6.97 percent. And this year, forecasts are for much of the same.

"Because of these continuing low rates and because of mortgage market innovations in the last few years, the robust housing market we experienced last year should continue through this year, adding to the level of homeownership."

Source: Freddie Mac

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