McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.24 percent, with an average 0.6 point, for the week ending June 27, 2003, up slightly from 5.21 percent last week. Last year at this time, the 30-year FRM averaged 6.55 percent.

The average for the 15-year FRM this week is 4.63 percent, with an average 0.6 point, up a little from last week's average of 4.62 percent. A year ago, the 15-year FRM averaged 5.99 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.45 percent this week, with an average 0.6 point, down a little from last week's average of 3.51 percent. At this time last year, the one-year ARM averaged 4.61 percent. This figure sets another record low.

"There were further signs this week that the economy may be finally taking a turn for the better," said Frank Nothaft, Freddie Mac chief economist. "Evidence of this change in momentum can be seen in the Fed's remarks yesterday that it was taking a neutral bias in terms of future intervention.

"Meanwhile, new home sales broke yet another record in May, while existing home sales were stronger than expected. This was primarily due to phenomenally low mortgage rates last month. Yet today we are experiencing rates that are about ¼ of a percentage point lower, which suggests that housing will continue at its stellar pace."

Published: June 27, 2003

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