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Rates Should Remain Stable This Week and for Rest of 2005 According to Freddie Mac
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Tuesday April 12, 2005
McLean, VA - The seemingly long awaited results of Freddie
Mac's Primary Mortgage Market Survey was released on the April 7, giving us a
measuring stick on the overall marketplace and gains or decreases in
mortgage rates which we can expect.
The report showed that the
30 year fixed-rate mortgage (FRM) averaged 5.93 percent with an average 0.7
points, for the week ending April 7. This figure was down from the prior week
when it averaged 6.04 percent. By way of comparison things are not as bad as some
mortgage brokers and bankers may have thought. The report
indicated that last year at this time, the 30 year FRM averaged 5.79 percent.
As far as
15 year fixed rate mortgage figures are concerned: Last week showed 5.48
percent, with an average 0.7 points. This number is down from the previous week
the average was 5.58 percent. A year ago, the 15-year FRM averaged 5.12 percent.
Regarding the ever increasingly more popular
ARM (adjustable rate mortgage):
Five-Year hybrid adjustable-rate mortgages (ARMs) averaged 5.33 percent last
week. There were an average of 0.7 points for these types of loans. This was
down from 5.43 the prior 7 days. Comparison to the prior year 2004 at this time
is impossible, as Freddie Mac began tracking this mortgage rate at the beginning
of 2005.
The one-year
adjustable-rate mortgage (ARM) averaged 4.23 percent last week with an
average 0.7 points. By way of comparison it was down from the prior week when
the average was 4.24 percent. At this time last year, the one-year ARM averaged
3.65 percent.
An overall prediction for the remainder of 2005 rates is good when considering
all variables. Yes, rates will continue to rise at an even keel, but in the
scope of things we are still very well-off. Our
forecast for 2005 is
that annual averages will remain below levels recorded three years ago at the
start of the refinance boom. - By Stockton Marquette, Mortgage
Industry Analyst.
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