McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.87 percent, with an average 0.7 point, for the week ending January 8, 2004, almost unchanged from 5.85 percent last week. Last year at this time, the 30-year FRM averaged 5.95 percent.

The average for the 15-year FRM this week is 5.17 percent, with an average 0.7 point, almost unchanged from last week's average of 5.15 percent. A year ago, the 15-year FRM averaged 5.33 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.76 percent this week, with an average 0.6 point, up slightly from 3.72 percent last week. At this time last year, the one-year ARM averaged 4.03 percent.

"With mortgage rates expected to remain around current modest levels, housing activity will continue to be brisk in 2004," said Frank Nothaft, Freddie Mac chief economist. "Although home starts and sales will slip a little this year from last year, we should still experience construction and sales volumes that exceed 2002's levels, which was a great year for housing.

"And we anticipate that housing appreciation will average about six percent over the next year, further insuring that housing remains an attractive investment for the future."

Published: January 9, 2004

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