McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.32 percent, with an average 0.7 point, for the week ending August 29, 2003, up slightly from 6.28 percent last week. Last year at this time, the 30-year FRM averaged 6.22 percent. This is the highest this figure has been since the week ending August 2, 2002, when it averaged 6.43 percent.

The average for the 15-year FRM this week is 5.66 percent, with an average 0.7 point, rising from last week's average of 5.60 percent. A year ago, the 15-year FRM averaged 5.64 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.88 percent this week, with an average 0.7 point, up from last week's average of 3.84 percent. At this time last year, the one-year ARM averaged 4.34 percent. This is the highest this figures has been since February 14, 2003, when it averaged 3.89 percent.

"Although mortgage rates have risen for the second week running, the long-term figures are still only about 50 basis points higher than they were at the start of the year," said Frank Nothaft, Freddie Mac chief economist. "This may have slowed the refinance market a little, but refinancing continues to make up about half of all applications for mortgages, according to the Mortgage Bankers Association.

"Home purchases remain robust as the economy begins to register signs of accelerating growth. Faster growth in the economy will partially offset the effects of rising mortgage rates through increases in household incomes and job growth."

Published: August 29, 2003

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