(Inman News Features) - Freddie Mac economist says financial market volatility affecting rates Friday, December 07, 2001 Inman News Features
Freddie Mac's Primary Mortgage Market Survey found interest rates on 30-year fixed-rate mortgages averaged 6.84 percent with an average 0.7 point for the week ended Dec. 7, down from 7.02 percent in the prior week. A year ago, the 30-year fixed-rate average was 7.54 percent.
The average for 15-year fixed-rates mortgages was 6.30 percent with an average 0.8 point, down from the prior week, when it averaged 6.53 percent. A year ago, the 15-year fixed rate mortgage averaged 7.19 percent.
"Mortgage rates eased back this week, correcting the market overreaction to mixed economic indicators which caused last week?s big jump in rates," said Freddie Mac Chief Economist Robert Van Order. "Financial markets remain quite volatile at present and this volatility will continue to influence mortgage rates through the end of the year.
"The good news is that consumer spending was encouraging in October, suggesting people may be more confident that the economy will recover sooner rather than later. Coupled with low mortgage rates, this could indicate the housing industry will continue to be strong and stable in 2002."
The interest rate on one-year U.S. Treasury-indexed adjustable-rate mortgages averaged 5.21 percent with an average 0.8 point, down slightly from the prior week?s average of 5.22 percent. This time last year, the one-year ARM averaged 7.21 percent.