Mortgage Rates Trend Back Down On Eve Of Federal Reserve Board Meeting

June 24, 2004

Long- and Short-Term Mortgage Rates Fuel Jump in New Home Sales

McLean, VA – In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.25 percent, with an average 0.6 point, for the week ending June 24, 2004, down from last week when it averaged 6.32 percent. Last year at this time, the 30-year FRM averaged 5.24 percent.

The average for the 15-year FRM this week is 5.64 percent, with an average 0.6 point, also down from last week when it averaged 5.70 percent. A year ago, the 15-year FRM averaged 4.63 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.13 percent this week, with an average 0.7 point, unchanged from last week. At this time last year, the one-year ARM averaged 3.45 percent.

"This week's easing off in mortgage rates is rooted in the market's wait-and-see posture with regard to the Federal Reserve Board's upcoming actions on interest rates this year starting with their meeting at the end of June," said Frank Nothaft, Freddie Mac vice president and chief economist. "Mortgage rates have been remarkably stable and affordable and borrowers responded enthusiastically in May by pushing up new home sales nearly 15 percent – the biggest one month gain in more than 11 years.

"Our current economic forecast sees 30-year mortgage rates staying in their current and attractive range of six to seven percent for the rest of the year."

The National Mortgage Rate Snapshop
This Week One Week Ago One Year Ago
30-Yr 15-Yr 1-Yr ARM
6.25

5.64

 4.13
0.6 0.6 0.7
30-Yr 15-Yr 1-Yr ARM
6.32

5.70

 4.13
0.5 0.5 0.7
30-Yr 15-Yr 1-Yr ARM
5.21 4.62 3.51
0.6

0.6

 0.7

Source: Freddie Mac


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