Housing Bubble

30 year FRM sets another record low

May 29, 2003

McLean, VA – In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.31 percent, with an average 0.6 point, for the week ending May 30, 2003, slipping from 5.34 percent last week. Last year at this time, the 30-year FRM averaged 6.76 percent. This figure sets yet another record low.

The average for the 15-year FRM this week is 4.73 percent, with an average 0.6 point, unchanged from last week’s average of 4.73 percent. A year ago, the 15-year FRM averaged 6.22 percent. This figure ties last week’s record low.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.63 percent this week, with an average 0.6 point, up very slightly from last week’s average of 3.61 percent. At this time last year, the one-year ARM averaged 4.76 percent.

“Low rates combined with the up-tick in consumer confidence are strong indications that the housing market will continue to prosper into the summer months,” said Frank Nothaft, Freddie Mac chief economist. “As it is, currently both new and existing home sales in April were stronger than originally expected.

“According to the Mortgage Bankers Associations, its refinance index surpassed an index value of 5,000 for 21 consecutive weeks, a sure sign that the refinancing industry is already bustling. As mortgage rates hover at current low levels, this trend should continue for some time to come.”

Source: Freddie Mac