|
Mortgage rates inch up
|
 |
January 18, 2001: 3:18 p.m. ET
Rates pushed higher in reaction to strong retail sales numbers
|
NEW YORK (CNNfn) - Mortgage rates rose for the first time in 10 weeks amid continuing signs of a sharp economic slowdown.
According to Freddie Mac, the benchmark 30-year fixed-rate mortgage (FRM) averaged 7.02 percent for the week ending Jan. 19, up from last week's average of 6.89 percent. A year ago, the same mortgage averaged 8.26 percent.
The average this week for a 15-year fixed-rate mortgage was at 6.63 percent, up from the previous week's average of 6.49 percent. A year ago, the same rate stood at 7.86 percent.
One-year adjustable rate mortgages (ARMs) fell slightly to an average 6.64 percent, down from last week's average of 6.65. The same mortgage averaged 6.56 percent this time last year.
[Click here to see a breakdown of U.S. mortgage rates by region.]
Despite the U.S. economic slowdown and slight mortgage rates increases, housing remains strong and rates affordable.
"Retail sales numbers were stronger than expected, pushing mortgages rates a little higher this week," said Freddie Mac chief economist Robert Van Order.
"However, rates remain historically low and we expect that will help keep the housing industry vibrant in the new year."
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. 
|
|
|
|
|
 |
|
