The average 30-year fixed-rate mortgage remained low this week, falling to 5.64 percent, down from 5.66 percent last week, according to Freddie Mac’s Primary Mortgage Market Survey.
“Mortgage rates remain low as the economy picks up steam allowing families a chance to purchase a new home or refinance if they haven’t yet. In 2003, single-family housing starts were at their highest annual average in twenty-five years, and average total-home sales are expected to break new records,” said Frank Nothaft, Freddie Mac’s Chief Economist. “With low prospects of inflation increasing anytime soon, mortgage rates should remain affordable over the first half of this year. Only last week, mortgage applications for home purchase hit a new record high, according to the Mortgage Bankers Association, thus reinforcing the notion of continued resilience in housing market at the onset of 2004.”