Contractors: Market Info

News Updates:

Fixed-rate mortgage rates hit seven-month highs

March 17, 2005: WASHINGTON (Reuters) - Interest rates on 30- and 15-year mortgages rose to their highest levels in seven months, according to a report by mortgage finance company Freddie Mac.

U.S. 30-year mortgage rates rose to an average of 5.95% in the week ended March 17 from 5.85% a week earlier. It was the highest level for 30-year mortgage rates since they hit 5.99% in early August. Fifteen-year mortgage rates also rose in the week to an average of 5.47% from 5.38%, the highest since 5.49% in late July. Rates on one-year adjustable rate mortgages (ARM) fell to 4.20% from 4.24% last week.

A year ago, 30-year mortgage rates averaged 5.38%, 15-year mortgage rates 4.69% and ARM rates 3.39%. The hybrid "5/1" ARM, set at a fixed rate for five years, then adjustable each year following, averaged 5.31%, up from 5.22% last week.

Housing has remained buoyant, kept aloft by long-term interest rates that have stayed relatively low in the face of a half-dozen rises in short-term rates by the Federal Reserve. Freddie Mac said lenders charged an average of 0.7% in fees and points on 30-year mortgages, up from 0.6% last week. They charged 0.7% on 15-year mortgages, up from 0.6% last week, and 0.8% on the one-year ARM, up from the prior week's 0.7%.

Market Updates:

January 2005

Changes in NAFTA will result in greater availability of softwood lumber and lower prices; a robust world economy will continue to tax existing supplies of building materials... more Market News
(from the Builders Association of the Hudson Valley January 2005 issue)

November 2004

Market News
(from the Builders Association of the Hudson Valley November 2004 issue)

February 2004

Effective Monday Feb. 20:
All LVLs and I-Beams will be increasing in price by 8% - 10%.
According to the Commerce Department, "U.S. builders broke ground on new homes at a faster-than-expected pace in December, closing out the best year in housing since 1978." Download the pdf (250 kb) for the full report.