Industry News

Once Again Mortgage Rates Ease Further In Freddie Mac Weekly Survey

April 29, 2005

Inflation Thought To Be Less Of A Threat At Present

Once Again Mortgage Rates Ease Further In Freddie Mac Weekly Survey Inflation Thought To Be Less Of A Threat At Present McLean, VA – Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage Market SurveySM (PMMSSM) in which the 30-year fixed-rate mortgage (FRM) averaged 5.78 percent, with an average 0.6 point, for the week ending April 28, 2005, down from last week when it averaged 5.80 percent. Last year at this time, the 30-year FRM averaged 6.01 percent.

The average for the 15-year FRM this week is 5.33 percent, with an average 0.6 point, down from last week when it averaged 5.36 percent. A year ago, the 15-year FRM averaged 5.35 percent.

Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.20 percent this week, with an average 0.5 point, down from 5.22 last week. There is no annual historical information for last year since Freddie Mac only began tracking this mortgage rate at the start of this year.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.21 percent this week, with an average 0.6 point, down from last week when it averaged 4.26 percent. At this time last year, the one-year ARM averaged 3.75 percent.

"The market was disappointed on the news of lower consumer confidence and lower orders for durable goods," said Frank Nothaft, vice president and chief economist. "These numbers suggest that the Fed will remain restrained in its practice of raising short term rates, which may be an indication the Fed doesn’t see inflation to be as great a threat as the markets previously had thought it would be.

"And when inflation is thought to be in check, mortgage rates naturally drift downward as they did this week."

Source: Freddie Mac

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