McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.00 percent, with an average 0.6 point, for the week ending July 15, 2004, down from last week when it averaged 6.01 percent. Last year at this time, the 30-year FRM averaged 5.52 percent.

The average for the 15-year FRM this week is 5.40 percent, with an average 0.6 point, also down from last week when it averaged 5.42 percent. A year ago, the 15-year FRM averaged 4.85 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.02 percent this week, with an average 0.6 point, down from last week when it averaged 4.05 percent. At this time last year, the one-year ARM averaged 3.55 percent.

"Taken as a whole, there are few compelling reasons why mortgage rates should dramatically increase right now," said Frank Nothaft, Freddie Mac vice president and chief economist. "In terms of the economy, retail sales, industrial production, and producer prices were all lower than expected in June. Additionally, the Federal Reserve Board appears to be on target in quelling any future surges in inflation.

"With inflation under control, and the economy growing nicely, the housing market continues at its current healthy pace."

Published: July 16, 2004

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