US Mortgage Rates Down Slightly Due to Lower Treasury Yields
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, August 3, 2007
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.29 percent this week, with an average 0.5 point, down from last week when it averaged 6.30 percent. A year ago, the 5-year ARM averaged 6.27 percent.
One-year Treasury-indexed ARMs averaged 5.59 percent this week with an average 0.5 point, down from last week when it averaged 5.69 percent. At this time last year, the 1-year ARM averaged 5.69 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Market investors seeking safety from the subprime fallout bought Treasury securities, pushing bond yields down and allowing mortgage rates to drift a bit lower,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Sales of new and existing homes fell in June, and prices continue to weaken, especially in the markets that had recorded the strongest gains over the past few years. There are early signs, however, that the market is stabilizing. As construction spending levels off, the drag on GDP growth will continue to diminish. Meanwhile, the 5 percent rise in pending home sales in June suggests that sales in July and August may reverse last month's decline.”
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SUMMARY OF SURVEY RESULTS |
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Fixed-Rate Mortgages |
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| Average Conventional 30-Year Commitment Rate | Fees & Points | Average Conventional 15-Year Commitment Rate | Fees & Points | |
| US | 6.68 | 0.3 | 6.32 | 0.3 |
| Northeast | 6.70 | 0.1 | 6.34 | 0.1 |
| Southeast | 6.62 | 0.3 | 6.30 | 0.3 |
| North Central | 6.71 | 0.2 | 6.36 | 0.2 |
| Southwest | 6.70 | 0.2 | 6.36 | 0.2 |
| West | 6.67 | 0.6 | 6.29 | 0.6 |
|
Adjustable–Rate Mortgages |
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| 5/1 ARM Commitment Rate | Fees & Points |
Margin |
1 Year ARM Commitment Rate | Fees & Points | Margin | ||||
| US | 6.29 | 0.5 | 2.76 | 5.59 | 0.5 | 2.75 | |||
| Northeast | 6.29 | 0.3 | 2.81 | 5.60 | 0.4 | 2.77 | |||
| Southeast | 6.32 | 0.5 | 2.75 | 5.73 | 0.6 | 2.75 | |||
| North Central | 6.40 | 0.3 | 2.78 | 5.67 | 0.4 | 2.75 | |||
| Southwest | 6.37 | 0.3 | 2.76 | 5.66 | 0.3 | 2.82 | |||
| West | 6.21 | 0.7 | 2.74 | 5.42 | 0.7 | 2.69 | |||
| Freddie Mac Region |
PMMS Weights |
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|
Northeast |
24.5 |
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|
Southeast |
18.6 |
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North Central |
15.4 |
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Southwest |
10.4 |
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|
West |
31.0 |
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PRIMARY MORTGAGE MARKET SURVEY RESULTS
30-YEAR FIXED RATE MORTGAGES
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|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
6.68 |
6.70 |
6.62 |
6.71 |
6.70 |
6.67 |
| Fees & Points |
0.3 |
0.1 |
0.3 |
0.2 |
0.2 |
0.6 |
15-YEAR FIXED RATE MORTGAGES
|
|
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|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
6.32 |
6.34 |
6.30 |
6.36 |
6.36 |
6.29 |
| Fees & Points |
0.3 |
0.1 |
0.3 |
0.2 |
0.2 |
0.6 |
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
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|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
6.29 |
6.29 |
6.32 |
6.40 |
6.37 |
6.21 |
| Fees & Points |
0.5 |
0.3 |
0.5 |
0.3 |
0.3 |
0.7 |
1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
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|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.59 |
5.60 |
5.73 |
5.67 |
5.66 |
5.42 |
| Fees & Points |
0.5 |
0.4 |
0.6 |
0.4 |
0.3 |
0.7 |
THE NATIONAL MORTGAGE RATE SNAPSHOT
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|
One Year Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.63 |
6.27 |
6.27 |
5.69 |
| Fees & Points |
0.3 |
0.3 |
0.4 |
0.7 |
|
|
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|
|
One Week Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.69 |
6.37 |
6.30 |
5.69 |
| Fees & Points |
0.4 |
0.4 |
0.4 |
0.5 |
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.
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