McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 8.15 percent, with an average 1.0 point, for the week ending January 7, 2000, up from last week’s average of 8.06 percent; a year ago, the 30-year FRM average was 6.79 percent. The 30-year FRM has not been higher since the week ending April 18, 1997, when it was 8.16 percent, with 1.7 points.

The average for 15-year FRMs jumped up as well, to 7.73 percent this week, with an average 1.0 point, from last week’s average of 7.66 percent. A year ago, the 15-year FRM averaged 6.43 percent. The 15-year FRM has not been higher since the week ending September 13, 1996, when it averaged 7.81.

The rate for 1-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 6.60 percent this week, with an average 1.0 point, compared to last week’s average of 6.56 percent. A year ago, the 1-year ARM averaged 5.61 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"Fear that the Federal Reserve will substantially raise rates at its next meeting in February has caused interest rates to rise for the eighth consecutive week," said Robert Van Order, chief economist for Freddie Mac. "Although we still have some economic indicators coming out that may sway the market one way or the other, however, the primary factor influencing future mortgage rates will be the Fed’s decision next month."

Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders. By supplying lenders with the money to make mortgages and packaging the mortgages into marketable securities, Freddie Mac sustains a stable mortgage credit system and reduces the mortgage rates paid by homebuyers. Over the years, Freddie Mac has opened doors for one in six homebuyers in America and two million renters.

For more interest rate news, check out the Realty Times Interest Rate Watch

Published: January 7, 2000

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