McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey^SM (PMMS^SM) in which the 30-year fixed-rate mortgage (FRM) averaged 6.10 percent, with an average 0.5 point, for the week ending October 20, 2005, up from last week’s average of 6.03 percent. Last year at this time, the 30-year FRM averaged 5.69 percent. This is the highest the 30-year FRM has been since the week ending July 1, 2004, when it averaged 6.21 percent.

The average for the 15-year FRM this week is 5.65 percent, with an average 0.6 point, up from last week when it averaged 5.62 percent. A year ago, the 15-year FRM averaged 5.07 percent. This is the highest the 15-year RM has been since the week ending June 17, 2004, when it averaged 5.70 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.59 percent this week, with an average 0.7 point, up from last week when it averaged 5.57 percent. There is no annual historical information for last year since Freddie Mac only began tracking this mortgage rate at the start of this year. This is the highest the five-year ARM has been since Freddie Mac started tracking it.

One-year Treasury-indexed ARMs averaged 4.89 percent this week, with an average 0.7 point, up from last week when it averaged 4.85 percent. At this time last year, the one-year ARM averaged 4.02 percent. This is the highest the one-year ARM has been since the week ending April 26, 2002,when it averaged 4.91 percent.

"Despite the gradual rise in mortgage rates over the last two months, housing starts were actually up in September highlighting the resiliency of the housing market," said Frank Nothaft, Freddie Mac vice president and chief economist. "As a matter of fact, housing directly contributed to real GDP growth of 19 percent in the first quarter of the year and 23 percent in the second quarter. To put this in perspective, this would compare to 17 percent of real GDP growth over all of 2004."

Published: October 21, 2005

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