US Long Term Mortgage Rates Drift Higher this Week
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, May 19, 2006
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.23 percent this week, with an average 0.5 point, up from last week when it averaged 6.22 percent. A year ago, the five-year ARM averaged 5.07 percent.
One-year Treasury-indexed ARMs averaged 5.62 percent this week, with an average 0.7 point, unchanged from last week. At this time last year, the one-year ARM averaged 4.26 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“While financial markets try to
decipher the spate of recently released economic reports, mortgage rates
drifted slightly higher,” said Frank Nothaft, Freddie Mac vice president
and chief economist. “The current debate is between rising inflation
and slower consumer spending. Until the market finds out which
influence will be the strongest, mortgage rates should continue to
fluctuate as they have the last couple weeks.
SUMMARY OF SURVEY RESULTS |
||||
Fixed-Rate Mortgages |
||||
Average Conventional 30-Year Commitment Rate | Fees & Points | Average Conventional 15-Year Commitment Rate | Fees & Points | |
US | 6.60 | 0.5 | 6.20 | 0.5 |
Northeast | 6.58 | 0.5 | 6.21 | 0.5 |
Southeast | 6.57 | 0.6 | 6.19 | 0.6 |
North Central | 6.73 | 0.3 | 6.27 | 0.3 |
Southwest | 6.58 | 0.5 | 6.20 | 0.5 |
West | 6.57 | 0.6 | 6.18 | 0.6 |
Adjustable–Rate Mortgages |
||||||
5/1 ARM Commitment Rate | Fees & Points | Margin | 1 Year ARM Commitment Rate | Fees & Points | Margin | |
US | 6.23 | 0.5 | 2.78 | 5.62 | 0.7 | 2.77 |
Northeast | 6.10 | 0.6 | 2.83 | 5.58 | 0.6 | 2.80 |
Southeast | 6.26 | 0.5 | 2.75 | 5.67 | 0.5 | 2.75 |
North Central | 6.38 | 0.6 | 2.80 | 5.59 | 0.8 | 2.80 |
Southwest | 6.15 | 0.5 | 2.78 | 5.62 | 0.7 | 2.78 |
West | 6.27 | 0.4 | 2.75 | 5.66 | 0.8 | 2.75 |
Freddie Mac defines its regions as
follows:
Northeast: NY, NJ, PA, DE, MD, DC,
VA, WV, PR, ME, NH, VT, MA, RI, CT, VI
Southeast: NC, SC, TN, KY, GA, AL,
FL, MS
North Central: OH, IN, IL, MI, WI,
MN, IA, ND, SD
Southwest: TX, LA,
NM, OK, AR, MO, KS, CO, NE, WY
West: CA, AZ, NV, OR, WA, UT, ID,
MT, HI, AK, GU
DEFINITIONS
Commitment Rate is the interest rate
a lender would charge to lend mortgage money to a qualified borrower
exclusive of the fees and points required by the lender. This commitment
rate applies only to conventional financing on conforming mortgages with
loan-to-value rates of 80 percent or less.
ARM Index –is the One-year Treasury.
Loan to Value Ratio (LTV) is the
ratio of the loan amount of a mortgage loan to the lower of the appraisal
value or purchase price of the property securing the loan.
Origination Fees and Discount Points
are the total charged by the lender at settlement. One point equals one
percent of the loan amount.
Margin is a fixed
amount added to the underlying index to establish the fully indexed rate
for an ARM.
Weighted Averages for the Primary
Mortgage Market Survey have been adjusted as of September 22, 2005. The
new weights use the dollar volume of conventional mortgage originations
within the 1-unit Freddie Mac loan limit as reported under the Home
Mortgage Disclosure Act (HMDA) for 2004. The weights are listed in the
table below.
Freddie Mac Region |
PMMS Weights |
Northeast |
24.6 |
Southeast |
16.5 |
North Central |
17.1 |
Southwest |
11.2 |
West |
30.7 |
PRIMARY MORTGAGE MARKET SURVEY RESULTS
30-YEAR FIXED RATE MORTGAGES
|
||||||
US |
NE |
SE |
NC |
SW |
W |
|
AVERAGE |
6.60 |
6.58 |
6.57 |
6.73 |
6.58 |
6.57 |
Fees & Points |
0.5 |
0.5 |
0.6 |
0.3 |
0.5 |
0.6 |
15-YEAR FIXED RATE MORTGAGES
|
||||||
US |
NE |
SE |
NC |
SW |
W |
|
AVERAGE |
6.20 |
6.21 |
6.19 |
6.27 |
6.20 |
6.18 |
Fees & Points |
0.5 |
0.5 |
0.6 |
0.3 |
0.5 |
0.6 |
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
|
||||||
US |
NE |
SE |
NC |
SW |
W |
|
AVERAGE |
6.23 |
6.10 |
6.26 |
6.38 |
6.15 |
6.27 |
Fees & Points |
0.5 |
0.6 |
0.5 |
0.6 |
0.5 |
0.4 |
1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
|
||||||
US |
NE |
SE |
NC |
SW |
W |
|
AVERAGE |
5.62 |
5.58 |
5.67 |
5.59 |
5.62 |
5.66 |
Fees & Points |
0.7 |
0.6 |
0.5 |
0.8 |
0.7 |
0.8 |
THE NATIONAL MORTGAGE RATE SNAPSHOT
|
||||
|
One Year Ago | |||
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
AVERAGE |
5.71 |
5.27 |
5.07 |
4.26 |
Fees & Points |
0.7 |
0.7 |
0.7 |
0.7 |
|
||||
|
One Week Ago | |||
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
AVERAGE |
6.58 |
6.17 |
6.22 |
5.62 |
Fees & Points |
0.5 |
0.5 |
0.5 |
0.7 |
Freddie Mac's Primary Mortgage Market Survey (PMMS) is for informational purposes only and Freddie Mac is not responsible for business decisions made based on the reported results of the PMMS. Freddie Mac may change the methodology used to conduct the PMMS survey at any time and without notice.