Industry News

Long-Term Mortgage Rates Hardly Budge From Last Week's Low Levels

March 4, 2004

One-Year ARM Slips Slightly

McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.59 percent, with an average 0.7 point, for the week ending March 4, 2004, nearly unchanged from last week when it averaged 5.58 percent. Last year at this time, the 30-year FRM averaged 5.67 percent.

The average for the 15-year FRM this week is 4.88 percent, with an average 0.7 point, almost unchanged from last week's average of 4.89 percent. A year ago, the 15-year FRM averaged 5.01 percent

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.47 percent this week, with an average 0.7 point, down from 3.50 percent last week. At this time last year, the one-year ARM averaged 3.76 percent. This is the lowest the one-year ARM has been since the week ending June 27, 2003, when it averaged 3.45 percent.

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

?Despite strong signs of economic growth, the financial markets were nonplussed, leaving mortgage rates to hover around the same affordable level for yet another week,? said Frank Nothaft, Freddie Mac chief economist.

?Employment figures for February are due out tomorrow. The expectation is that over 100,000 much needed jobs will have been created last month and that will help sustain economic growth. As the economy becomes stronger, there is every expectation that mortgage rates may begin to drift slowly upward,? added Nothaft.