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Mortgage rates see-saw
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November 16, 2000: 3:43 p.m. ET
Long-term home-loan interest down, short-term rates up in robust market
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NEW YORK (CNNfn) - Mortgage rates were mixed as the housing market remained robust, according to a survey released Thursday by Freddie Mac.
The benchmark 30-year fixed-rate mortgage (FRM) averaged 7.73 percent for the week ending Nov. 16, down slightly from last week's average of 7.79 percent. A year ago, the same mortgage averaged 7.69 percent.
The average this week for a 15-year fixed-rate mortgage was 7.41 percent, down a little from last week's average of 7.44 percent. A year ago, the same rate stood at 7.31 percent.
One-year adjustable-rate mortgages (ARMs) this week averaged 7.25 percent, up from last week's average of 7.23 percent. The same mortgage averaged 6.35 percent this time last year.
 [Click here to see a breakdown of U.S. mortgage rates by region.]
"The recent Producer Price Index figures, which came out lower than had been expected, along with the Federal Reserve's inaction at its latest meeting, calmed markets this week," said Robert Van Order, chief economist for Freddie Mac. "This relieved any upward pressure on long-term interest rates, allowing the 30-year FRM and the 15-year FRM to drift downward.
"The current stability is good for housing, which continues to remain robust. Looking forward, we don't see any changes – at least in the near term – that would mean a change in present economic conditions," he added.
Freddie Mac (FRE: Research, Estimates), or Federal Home Mortgage Corp., is a publicly traded company the government established in 1970 to provide a flow of funds to mortgage lenders.
It buys mortgages from banks, bundles them, and then resells them as mortgage-backed securities. Its products, and the products of other similar entities, have become increasingly popular as an alternative to government backed bonds, particularly with international investors. 
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Freddie Mac
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