Industry News

Fed action sparks rise in real estate rates

Katrina not expected to impact economy long-term
Published on Sep 22, 2005

Long-term mortgage rates rose for the second consecutive week after the Fed raised the cost of money Tuesday, according to surveys conducted by Freddie Mac and Bankrate.com. In Freddie Mac's survey, the 30-year fixed-rate mortgage averaged 5.8 percent for the week ended today, up from last week when it averaged 5.74 percent. The average for the 15-year fixed-rate mortgage is 5.37 percent, up from last week when it averaged 5.32 percent. Points on the 30- and 15-year averaged 0.6 and 0.7, respectively. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 5.31 percent this week, with an average 0.8 point, up from last week when it averaged 5.26 percent. The one-year Treasury-indexed ARM averaged 4.48 percent this week, with an average 0.7 point, up slightly from last week when it averaged 4.46 percent. "Mortgage rates look like they are back on track where the Fed wants them, which is gradually rising," said Frank Nothaft, vice president and chief economist at Fre...

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