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Freddie Mac Says, "Rates Are Remarkably Low."
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June 19, 2005 LOS ANGELES --
Mortgage giant Freddie Mac released a statement
Thursday detailing the unexpected decline in U.S. fixed-rate
mortgages, week ending Thursday. The benchmark 30
year fixed mortgage national average rate dipped to 5.71 percent. This down
from 5.77 percent one week prior.
In addition to the good news regarding the big 30, Freddie
Mac's weekly survey showed average 15-year
fixed mortgage rates fell to to 5.27 percent from 5.33 percent the previous
week. Five-year hybrid adjustable
mortgage home loan rates also dropped to 5.07 percent from 5.21 percent.
Here's the oddity of all the numbers when overviewed:
Fixed interest rate home loans are well below their levels exactly one year ago
when 30 year benchmark rates sat at 6.3 percent and
15-year fixed mortgage rates
were a steady 5.67 percent.
According to Freddie Mac,
ARMs (adjustable-rate mortgage)
have gone up a slight bit, about one-quarter percentage point to be exact, in
the 12 month prior comparison rate charts.
On average, the aforementioned home loan programs merely required an average 0.7
points to buy down to the benchmark rate. Not bad, we must say.
Frank Nothaft, chief economist for Freddie Mac said, "It is
remarkable how mortgage rates have remained so low for so long,
but as long as inflation is held in check, there is little or no pressure to
push mortgage rates higher. And at the moment, despite high fuel prices, core
inflation does indeed seem to be a nonevent.
One planning to qualify for a home purchase
for the first time or even a second, third or greater likely have ear-to-ear
smiles at news of the stability of historically rock-bottom rates.
Home refinance and cash out refi mortgage seekers are most
certainly energized by the rates of late, and as such many are reacting by
refinancing online and locally.
Nothaft added, "Continuing low rates will keep the housing
industry abuzz. As a matter of fact, both new and existing housing sales figures
in April are expected to come in at or near record levels."
News article by
Stockton Marquette, Mortgage Industry Analyst.
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