Housing Bubble
Market volatility pushes mortgage rates up
In Freddie Mac's Primary Mortgage Market Survey, the average interest rate on 30-year fixed-rate mortgages moved up to 6.03 percent, with an average 0.6 point, for the week ending November 22, 2002. This was a rise from 5.94 percent last week, which was the lowest since Freddie Mac began the survey 1971. Last year at this time, the 30-year FRM averaged 6.75 percent.
The average for the 15-year fixed-rate mortgages was 5.44 percent, with an average 0.6 point. This was also an increases from last week's average of 5.32 percent, the lowest level since first being tracked in 1991. A year ago, the 15-year FRM averaged 6.24 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.14 percent this week, with an average 0.6 point, up from last week's average of 4.09 percent. At the same time last year, the one-year ARM averaged 5.18 percent.
"As we expected, mortgage rates moved upward a little in response to the current volatility in the financial markets," said Frank Nothaft, Freddie Mac chief economist. "Economic reports are mixed and this will keep mortgage rates bouncing up and down somewhat, probably for the rest of this year.
"For example, housing starts for October were weak but housing permits picked up to their highest level since February. This is a good indication that the housing industry is still in great shape despite last month's apparent lull."
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