McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.83 percent, with an average 0.6 point, for the week ending November 21, 2003, down from 6.03 percent last week. Last year at this time, the 30-year FRM averaged 6.03 percent.

The average for the 15-year FRM this week is 5.17 percent, with an average 0.7 point, down from last week's average of 5.39 percent. A year ago, the 15-year FRM averaged 5.44 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.72 percent this week, with an average 0.7 point, almost unchanged from last week's average of 3.76 percent. At this time last year, the one-year ARM averaged 4.14 percent.

"Over the past week, several high ranking Federal Reserve officials gave speeches indicating that inflation remains a non-event. One official even suggested the possibility that inflation might go even lower is more of an issue for the Fed at the moment," said Frank Nothaft, Freddie Mac chief economist. "Consequently, the bond market rallied and this caused mortgage rates to fall.

"Meanwhile, fueled by low, affordable mortgage rates, housing starts came in at a nearly 18-year high in October, with an upward revision in September. Our latest economic forecast calls for low inflation into the next year and as long as that holds true, there will be little upward pressure that might force interest rates significantly higher."

Published: November 21, 2003

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