Flagging Economy Continues To Keep Mortgage Rates Low

November 8, 2002

1-Year ARM Lowest Since 1994

McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.11 percent, with an average 0.6 point, for the week ending November 8, 2002, slipping from 6.13 percent last week. Last year at this time, the 30-year FRM averaged 6.45 percent.

The average for the 15-year FRM this week is 5.48 percent, with an average 0.6 point, down from last week's average of 5.51 percent. A year ago, the 15-year FRM averaged 5.94 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.15 percent this week, with an average 0.7 point, down from last week's average of 4.25 percent. This time last year, the one-year ARM averaged 5.30 percent. The one-year ARM has not been lower since the week ending February 4, 1994 when it was 4.12 percent.

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

"Recent economic indicators show a lackluster economic climate," said Frank Nothaft, Freddie Mac chief economist. "And that led to the surprise 50-basis point rate cut by the Fed yesterday.

"Anticipation of a 25-basis point rate cut pushed mortgage rates downward in this week's survey, and we expect to see further downward drifts over the coming week or so as the market moves on the actual larger rate cut itself."

The National Mortgage Rate Snapshot
This Week One Week Ago One Year Ago
30-Yr 15-Yr 1 Yr-ARM
6.11 5.48 4.15
0.6 0.6 0.7
30-Yr 15-Yr 1 Yr-ARM
6.13 5.51 4.25
0.6 0.6 0.6
30-Yr 15-Yr 1 Yr-ARM
6.45

5.94

5.30
0.8 0.8 0.8

Source: Freddie Mac


Contact ALTA at 202-296-3671 or communications@alta.org.

SoftPro, based in Raleigh, NC, offers a mature suite of products, designed specifically for the closing and title industry. Our mission is to serve our client base, with best-in-class products and services. Our products are modular so we don't force you to buy anything you don't need. You can always add on as your business grows. Unlike other software companies, we view the sale as the beginning of the relationship rather than the end. North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.