McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.94 percent, with an average 0.7 point, for the week ending April 22, 2004, up from last week when it averaged 5.89 percent. Last year at this time, the 30-year FRM averaged 5.79 percent.

The average for the 15-year FRM this week is 5.25 percent, with an average 0.7 point, up slightly from last week when it averaged 5.23 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 0.7 point, unchanged from last week. At this time last year, the one-year ARM averaged 3.79 percent.

"Although this past month's dramatic rise in mortgage rates is consistent with an economic recovery, it will take more than one month of strong employment gains to verify this recovery is sustainable," said Frank Nothaft, Freddie Mac chief economist. "The market is behaving as though the recovery is a fait accompli and has entered a volatile period of trying to outguess the Federal Reserve Board's next move.

"Home purchase applications are still strong, according to the Mortgage Banker's application survey, which also showed that refinancing fell off over the last four weeks, due almost entirely to higher mortgage rates."

Published: April 23, 2004

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