McLean, VA – In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.28 percent, with an average 0.8 point, for the week ending August 22, 2003, up slightly from 6.24 percent last week. Last year at this time, the 30-year FRM averaged 6.27 percent.

The average for the 15-year FRM this week is 5.60 percent, with an average 0.8 point, up a little from last week’s average of 5.58 percent. A year ago, the 15-year FRM averaged 5.71 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.84 percent this week, with an average 0.7 point, up from last week’s average of 3.75 percent. At this time last year, the one-year ARM averaged 4.34 percent.

“The recent upswing in mortgage rates does not seem to have slowed the new home construction market, if July’s housing starts figures are any indication,” said Frank Nothaft, Freddie Mac chief economist. “Total starts hit a 17-year high in July while single-family starts in the same month were the at the highest level since 1978.

“Even as mortgage rates continued to climb in August, builder confidence reached its highest level in three and one half years, according to the National Association of Home Builders. This would seem to indicate that 2003 will continue to be an outstanding year for the housing industry."

Published: August 22, 2003

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