McLean, VA – Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.74 percent, with an average 0.6 points, for the week ending January 13, 2005, down from last week when it averaged 5.77 percent. Last year at this time, the 30-year FRM averaged 5.66 percent.

The average for the 15-year FRM this week is 5.19 percent, with an average 0.6 points, down from last week when it averaged 5.21 percent. A year ago, the 15-year FRM averaged 4.97 percent.

Five-Year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 5.05 percent this week, with an average 0.5 points. Last week, the five-year ARM averaged 5.03 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.10 percent this week, with an average 0.6 point, unchanged from last week. At this time last year, the one-year ARM averaged 3.62 percent.

"The onset of 2005 bodes well for the housing industry. Long-term mortgage rates are currently below six percent. Although we expect mortgage rates to end the year bit higher, they still provide a historic value to borrowers considering how over the past thirty years fixed rate mortgages have averaged about 9.5 percent," said Freddie Mac Deputy Chief Economist Amy Crews Cutts.

"One wrinkle in our forecast would be the emergence of unexpected inflation. At the end of this week and next, new inflation indicators will be released for the month of December. As it stands now, the market expects these releases to be tame, if not, mortgage rates will rise more quickly in response," added Crews Cutts.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to create a continuous flow of funds to mortgage lenders in support of homeownership and rental housing. Freddie Mac purchases mortgages from lenders and packages them into securities that are sold to investors. Over the years, Freddie Mac has made home possible for one in six homebuyers in America.