McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.89 percent, with an average 0.6 point, for the week ending April 15, 2004, up from last week when it averaged 5.79 percent. Last year at this time, the 30-year FRM averaged 5.82 percent.

The average for the 15-year FRM this week is 5.23 percent, with an average 0.6 point, up from last week when it averaged 5.12 percent. A year ago, the 15-year FRM averaged 5.12 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.69 percent this week, with an average 0.6 point, up from 3.65 percent last week. At this time last year, the one-year ARM averaged 3.79 percent.

"With economic news continuing to point to a growing economy, the financial markets are beginning to think about the likelihood of inflation again," said Frank Nothaft, Freddie Mac chief economist. "Not only that, but jobs creation, retail sales, and consumer prices jumped in March which buoyed market speculation that the Federal Reserve Board will raise rates sooner than expected. Add all that to the mix and mortgage rates were bound to rise this week.

"Although economic indicators thus far suggest March was an outstanding month, we still have to see how April will fare, especially with higher -- although still moderate -- interest rates."

Published: April 16, 2004

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