Housing Bubble
Housing industry set for another good year says Freddie Mac
McLean, VA – In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.82 percent, with an average 0.6 point, for the week ending April 18, 2003, creeping back down from 5.85 percent last week. Last year at this time, the 30-year FRM averaged 6.94 percent.
The average for the 15-year FRM this week is 5.12 percent, with an average 0.6 point, dipping from last week's average of 5.17 percent. A year ago, the 15-year FRM averaged 6.42 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.79 percent this week, with an average 0.6 point, almost unchanged from 3.80 percent last week. At this time last year, the one-year ARM averaged 4.95 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Housing is poised for another exceptional year. For instance, for the year so far, mortgage rates have been continually under six percent, as opposed to last year when rates averaged about a half percentage point higher," said Frank Nothaft, Freddie Mac chief economist. "Another good hear for housing would also lend support to the national economy.
"Housing starts rebounded in March owing to record low rates and more seasonal weather and we expect starts will remain at current levels for at least the next few months. Meanwhile, we expect sales to be strong as well."
Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to create a continuous flow of funds to mortgage lenders in support of homeownership and rental housing. Freddie Mac purchases mortgages from lenders and packages them into securities that are sold to investors. Over the years, Freddie Mac has opened doors for one in six homebuyers in America.
Source: Freddie Mac
