McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.44 percent, with an average 0.6 point, for the week ending September 5, 2003, up again from 6.32 percent last week. Last year at this time, the 30-year FRM averaged 6.15 percent. This is the highest the 30-year FRM has been since the week ending July 19, 2002, when it averaged 6.49 percent.

The average for the 15-year FRM this week is 5.77 percent, with an average 0.6 point, rising from last week's average of 5.66 percent. A year ago, the 15-year FRM averaged 5.56 percent. This is the highest the 15-year FRM has been since the week ending August 2, 2002, when it averaged 5.84 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.98 percent this week, with an average 0.6 point, up from last week's average of 3.88 percent. At this time last year, the one-year ARM averaged 4.35 percent. This is the highest this figures has been since January 17, 2003, when it averaged 4.03 percent.

"The 10-year Treasury bond yields continue to climb, raising mortgage rates as they go. Also contributing to the current rise in rates is the growing number of favorable news reports about an upturn in economic growth," Amy Crews Cutts, Freddie Mac deputy chief economist. "It is important to note that we are also seeing a moderation in the rate of house price appreciation and that should help counter higher mortgage rates, keep housing affordable and the industry busy."

NOTE: Freddie Mac last week reported that the 30-year FRM was the highest it had been in one year. But the 6.32 percent FRM reported on August 29,2003, was the second highest. On August 8, 2003, the 30-year FRM had reached 6.34 percent.

Published: September 5, 2003

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