McLean, VA – In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.16 percent, with an average 0.6 point, for the week ending September 12, 2003, down significantly from 6.44 percent last week. Last year at this time, the 30-year FRM averaged 6.18 percent.

The average for the 15-year FRM this week is 5.46 percent, with an average 0.6 point, down considerably from last week’s average of 5.77 percent. A year ago, the 15-year FRM averaged 5.59 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.87 percent this week, with an average 0.6 point, down from last week’s average of 3.98 percent. At this time last year, the one-year ARM averaged 4.32 percent.

“The release of August jobs report showed a continuation of the jobless recovery, which served to stem some of the enthusiasm in the Treasury bond market. This, of course, caused interest rates, including mortgage rates, to ease back from the highest level we had seen in a year,” said Frank Nothaft, Freddie Mac chief economist. “On the other hand, the Mortgage Bankers Association applications survey was very favorable last week, with a jump in refinances. This would seem to indicate that there are still homeowners out there who will benefit from refinancing.

“We also experienced a growth in mortgage debt outstanding in the second quarter at an annualized pace of 15.7 percent for the single-family market, compared to the first quarter growth of 11.5 percent and 2002’s growth rate of 12.6 percent. That would be one more sign that the second quarter of 2003 was a record period for the housing industry.”

Published: September 12, 2003

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