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“However, the resiliency of the housing sector continues to amaze,” said Nothaft. “2005 will be another banner year for the housing industry.”

Five-year adjustable-rate mortgages averaged 5.31 percent, compared to 5.26 percent the previous week. There is no data available for a year-to-year comparisons since Freddie Mac only began tracking the 5-year loans this year.

One-year adjustable-rate mortgages averaged 4.48 percent, up slightly from 4.46 percent the week before. At this time last year, the one-year loan averaged 4.00 percent.

Source: Money.com

Expect it to go even higher…

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Mortgage rates rose this week, a Freddie Mac survey said, and an economist at the government-chartered lender said the housing market is likely to slow.

Freddie Mac said the average rate on 30-year fixed-rate mortgages rose to 5.80 percent this week, up from last week’s 5.74 percent.

In the year-ago period, the 30-year mortgage averaged 5.70 percent.

The average rate on 15-year fixed rate mortgages edged higher to 5.37 percent, up from 5.32 percent the previous week. The loan averaged 5.10 percent last year.

“Mortgage rates look like they are back on track where the Fed wants them, which is gradually rising,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “Freddie Mac’s economic forecast calls for a cooling of the housing market going into next year, and gently rising rates are part of that scenario.

Source: Money.com

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Popularity contest

According to the report, remodeling was the biggest source of business for architects during the second quarter, with additions and alterations and kitchen/bath projects leading the way.

The tastes of Americans continued to evolve, changing the popularity of specific home features. Residences are getting less formal and the Institute reported a marked decline in the kind of upscale entryways and foyers that had been much in demand in years past.

Less popular too, despite growing auto ownership nationwide are giant garages with bays for three or more cars.

Home offices led the list of amenities that have grown in popularity. The difference between the percentage of architects reporting increased demand for this kind of room minus those reporting decreased demand came to 47 percentage points.

Hobby/game rooms (30 percent difference); mud rooms (26 percent); and media rooms (24 percent) also showed increased popularity.

Another major home feature more Americans want is living space dedicated to other household members; 38 percent of architects cited increased demand for this feature with about 15 percent cited lower demand.

More and more, entire wings or suites, including separate kitchens and baths, are being incorporated in home design or added to existing houses. These may be used by aging parents or live-in child-care workers.

According to a survey of architects, here’s what Americans are most interested in adding to their houses.

Feature Popularity
Home office 47%
Game room 30%
Mud room 26%
Home theater 24%
Guest wing 23%
In-law suite 22%
Laundry room 18%
Fitness center 13%

Source: American Institute of Architects