McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.79 percent, with an average 0.7 point, for the week ending April 8, 2004, up significantly from last week when it averaged 5.52 percent. Last year at this time, the 30-year FRM averaged 5.85 percent.

The average for the 15-year FRM this week is 5.12 percent, with an average 0.7 point, up as from last week when it averaged 4.84 percent. A year ago, the 15-year FRM averaged 5.17 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.65 percent this week, with an average 0.5 point, up from 3.46 percent last week. At this time last year, the one-year ARM averaged 3.80 percent.

"The bond market reacted to the welcome news last Friday that jobs are finally being created, which is much needed for continued expansion of the economy," said Amy Crews Cutts, Freddie Mac deputy chief economist. "Mortgage rates again followed the bond market, rising significantly from last week to this week, and spurring speculation that the Federal Reserve Board will raise rates sooner rather than later.

"With that said, it should also be noted that long-term rates are not expected to rise precipitously and, in fact, we still expect the 30-year FRM will average below six percent for 2004."

Published: April 9, 2004

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