McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.01 percent, with an average 0.5 point, for the week ending September 19, 2003, down from 6.16 percent last week. Last year at this time, the 30-year FRM averaged 6.05 percent.

The average for the 15-year FRM this week is 5.30 percent, with an average 0.5 point, down from last week's average of 5.46 percent. A year ago, the 15-year FRM averaged 5.47 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.81 percent this week, with an average 0.6 point, down from last week's average of 3.87 percent. At this time last year, the one-year ARM averaged 4.28 percent.

"Financial markets are feeling more confident that the Fed will not raise rates anytime soon. Add to that the fact that recent economic data shows core inflation is less than the market expects, and we see mortgage rates drop once again," said Frank Nothaft, Freddie Mac chief economist. "And although refinancing has fallen off somewhat, home buying activity remains vigorous, unfazed by market chatter that the end of the housing boom is near.

"New and existing home sales figures for August will be released next week and although sales may be down slightly, we expect those numbers will show that the trend is for the housing market to continue to shine."

Published: September 19, 2003

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