McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.94 percent, with an average 0.4 point, for the week ending July 25, 2003, up strikingly from 5.67 percent last week. Last year at this time, the 30-year FRM averaged 6.34 percent.

The average for the 15-year FRM this week is 5.27 percent, with an average 0.5 point, up smartly from last week's average of 5.00 percent. A year ago, the 15-year FRM averaged 5.76 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.67 percent this week, with an average 0.5 point, up from last week's average of 3.58 percent. At this time last year, the one-year ARM averaged 4.31 percent.

"Mortgage rates rose again for the third consecutive week, bringing long term rates to about the same levels we saw at the start of the year. This may start to apply the brakes to the frenzy of refinancing that we are currently experiencing," said Frank Nothaft, Freddie Mac's chief economist. "Purchases of homes remain strong, though. The Mortgage Bankers Association purchase index last week was only four percent below its all-time record.

"As a matter of fact, the Census Bureau today released the homeownership rate for second quarter 2003, which came out to be 68.0 percent. Although seeming to be flat primarily because of seasonal factors, when compared to last year at the same time the national homeownership rate rose 0.6 percent over the course of the year. The figures also showed that among blacks, the rate of homeownership grew at twice the national level."

Published: July 25, 2003

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