Get Your Mortgage Rate Quote in Just 30 Seconds

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below.

30-year to Stay Below 5.7% in 2006

30-year to Stay Below 5.7% in 2006Average 30-year 5.73%

July 21, 2005


The average ARM neared a three-year high while the share of adjustable rates loans fell to a 16-month low. And the average 30-year fixed rate, which was up from last week, is projected by one economist to stay under 5.7% next year.

Up seven basis points from last week, the 30-year fixed-rate mortgage average came in at 5.73%, according to Freddie Mac’s latest survey of 125 mortgage-lending companies, thrifts and commercial banks. The 30-year, however, is still below 5.98% at this time last year.

In its revised mortgage outlook Tuesday, Fannie Mae predicted the 30-year will average 5.6% this quarter and stay below 5.7% throughout 2006.

But for the next 45 days, half of the mortgage bankers, brokers and other industry “experts” surveyed by expect rates to rise, while 34% expect rates to stay put.

The average for the 15-year also climbed seven BPS this week to 5.32%, Freddie reported.

Late afternoon Thursday, the 10-year Treasury note yielded 4.27% — up 11 BPS for the day — with a price of 98.78. The scenario was much better a week ago when the figures were 4.17% and 99.56.

According to Freddie, the highest jump was in the 5-year Treasury-indexed hybrid adjustable-rate mortgage average — up 11 BPS from a week ago to 5.26%.

Although the 1-year Treasury-indexed ARM average increased the least, 3 BPS to 4.42% this week, Freddie said its the highest level since the week ending Aug. 2, 2002. The 1-year T-bill, which is reportedly used as the index on roughly half of all ARMs, was 3.66% as of Thursday, rising seven BPS from last week, the Federal Reserve reported.

“As the one-year ARM reaches its highest interest rate level in almost three years, it comes as no surprise that the ARM share, based on number of applications for a mortgage, has fallen noticeably since the beginning of June,” commented Freddie chief economist Frank Nothaft in a written statement.

ARMs were reported to comprise over a third of total mortgage requests early last month.

Currently, the ARM share is at 29%, just barely higher than the previous week’s 16-month low, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, which runs one week behind Freddie’s.

Overall application activity edged up from the prior week due to a 3% improvement in refinance loan requests as purchase money loan applications were unchanged, the MBA said.

The refi share reportedly nudged up from a week earlier to 46%, MBAs announcement said.


Coco Salazar is an assistant editor and staff writer for E-mail: [email protected]

Popular posts

7 Refinance Strategies
7 Refinance Strategies

Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...

7 Refinance Strategies
Is Refinancing With Your Present Lender Preferable?

Do Not Accept the First Refinancing Offer You Receive Homeowners should not accept the first refinancing rate provided to them. This is particularly important if you are applying with your existing lender. Some mortgage lenders have mechanisms in place that prioritize...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

Fannie Mae Profile

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC...