Industry News

Low Mortgage Rates Continue To Attract Buyers And Refinancers

January 10, 2003

Homeowners Saved Average $100 Per Month When Refinancing Last Year

McLean, VA - In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.95 percent, with an average 0.5 point, for the week ending January 10, 2003, rising from 5.85 percent last week. Last year at this time, the 30-year FRM averaged 7.06 percent.

The average for the 15-year FRM this week is 5.33 percent, with an average 0.6 point, up from last week's average of 5.24 percent. A year ago, the 15-year FRM averaged 6.55 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.03 percent this week, with an average 0.6 point, slightly lower than last week's average of 4.06 percent. At the same time last year, the one-year ARM averaged 5.26 percent.

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

" Recent data indicate a possible turn-around in the manufacturing segment of the economy," said Frank Nothaft, Freddie Mac chief economist. "This is good news since the depressed manufacturing industry had previously been a drag on the economy.

" Meanwhile, in spite of the sluggishness in the economy, nearly 25 percent of all outstanding mortgages were refinanced in 2002, saving those homeowners an average $1,200 per year to spend or save as they see fit. And with interest rates as low as they currently are, refinancing will continue to be a viable option for some."

Contact ALTA at 202-296-3671 or [email protected].