Industry News

Mortgage Rates Rise This Week, But Remain Lower Than Last Year's Annual Average

June 17, 2005

McLean, VA – The results of Freddie Mac (NYSE:FRE) Primary Mortgage Market SurveySM (PMMSSM)found that the 30-year fixed-rate mortgage (FRM) averaged 5.63 percent, with an average 0.5 point, for the week ending June 16, 2005, up from last week when it averaged 5.56 percent. Last year at this time, the 30-year FRM averaged 6.32 percent.

The average for the 15-year FRM this week is 5.22 percent, with an average 0.5 point, up from last week when it averaged 5.14 percent. A year ago, the 15-year FRM averaged 5.70 percent.

Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.10 percent this week, with an average 0.5 point, also higher from last week when it averaged 5.01 percent. 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 4.25 percent this week, with an average 0.6 point, up slightly from last week when it averaged 4.21 percent. At this time last year, the one-year ARM averaged 4.13 percent.

"Although the 30-year mortgage rate ticked up this week, which wasn't completely unexpected, it is still below last year's annual average and well below where it was at this time last year," said Frank Nothaft, Freddie Mac vice president and chief economist. "Driven by low mortgage rates, recently released single-family housing starts for May continued to advance.

"Additionally, applications for home purchase were the highest ever recorded last week, according to the Mortgage Bankers Association, which also reported that refinancing activity reached almost 50 percent of applications over the same period. The housing industry continues to amaze us."

Source: Freddie Mac

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