Freddie Mac Says, "Rates Are Remarkably Low."


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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