Mortgage Market Survey for June 16, 2005

Here are the results of Freddie Mac's most recent, weekly primary mortgage market survey for the week of June 10th - June 16th, 2005:

• 30 year fixed rate mortgage: 5.63% (0.50 points)
• 15 year fixed rate mortgage: 5.22% (0.50 points)
• 5/1 year adjustable rate mortgage (ARM): 5.10% (0.50 points)
• 1 year adjustable rate mortgage (ARM): 4.25% (0.60 points)

This past week, the 30-year fixed-rate mortgage (FRM) averaged 5.63 percent, with an average 0.5 point. This is up from last week when it averaged 5.56 percent. Last year at this time, the 30-year FRM averaged 6.32 percent.

The average for the 15-year FRM this week is 5.22 percent, with an average 0.5 point, also up from last week when it averaged 5.14 percent. A year ago, the 15-year FRM averaged 5.70 percent.

Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.10 percent this week, with an average 0.5 point (it averaged 5.14 percent last week). There is no annual historical information for last year since Freddie Mac only began tracking this mortgage rate at the start of this year.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.25 percent this week, with an average 0.6 point, up from last week when it averaged 4.21 percent. At this time last year, the one-year ARM averaged 4.13 percent.

Each week, Freddie Mac surveys lenders across the nation to determine the average 30-year fixed-rate mortgage rate; 15-year fixed-rate mortgage rate; 5/1 hybrid ARM; and 1-year ARM. Currently, 125 lenders are surveyed each week and the mix of lender types - thrifts, commercial banks and mortgage lending companies - is roughly proportional to the level of mortgage business that each type commands nationwide.

Assuming a 30 year fixed loan on a single family residence in California valued at $400, 000 with a $300,000 loan amount, on a borrower with excellent credit, lets see how the interest rates offered by the major lenders, as of June 16th, are doing in comparison to the national average:

Bank of America - 5.625% with 0.966 points. APR = 5.740%

Chase - 5.500% with 0.875 points. APR = 5.580%

Citibank - 5.625% with 0.500 points. APR = 5.863%

CountryWide - 5.750% with 0.875 points. APR = 5.855%

Ditech - 5.375% with 0.375 points. APR = 5.449%

ELoan - 5.375% with 0.825 points. APR - 5.485%

ETrade - 5.375% with 1.375 points. APR - 5.550%

Indy Mac Bank - 5.625% with 0.625 points. APR - 5.731%

Washington Mutual - 5.625% with 0.625 points. APR - 5.715%

Wells Fargo - 5.625% with ? points. APR - 5.814%

This week, of the larger lenders, it looks like Ditech is offering the lowest APR, which is the effective annual interest rate once points and fees are factored into the cost of the loan.