US Mortgage Rates Rise Slightly

Location: McLean
Author: Eileen Fitzpatrick
Date: Friday, August 17, 2007

Freddie Mac (NYSE:FRE) yesterday released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.62 percent with an average 0.4 point for the week ending August 16, up from last week when it averaged 6.59. Last year at this time, the 30-year FRM averaged 6.52 percent.

The 15-year FRM this week averaged 6.30 percent with an average 0.5 point, up from last week when it averaged 6.25 percent. A year ago, the 15-year FRM averaged 6.20 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.35 percent this week, with an average 0.5 point, up from last week when it averaged 6.33 percent. A year ago, the 5-year ARM averaged 6.18 percent.

One-year Treasury-indexed ARMs averaged 5.67 percent this week with an average 0.6 point, up from last week when it averaged 5.65 percent. At this time last year, the 1-year ARM averaged 5.65 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"Interest rates on prime conforming fixed-rate mortgages ticked up a little in the past week, in line with 10-year Treasury rates movements and retracing part of last week’s decline," said Frank Nothaft, Freddie Mac vice president and chief economist. "Problems in the non-prime mortgage market where funds are expensive and hard-to-get have not affected the prime conforming market.

"This week’s data releases included the Producer Price Index and Consumer Price Index for July. Core inflation at the wholesale level increased 0.1 percent in July, or 2.3 percent year-over-year, below market expectations, while core inflation at the retail level grew by 0.2 percent, or 2.2 percent year-over-year, in line with what had been expected. ."

F SURVEY RESULTS
Fixed-Rate Mortgages
	Average Conventional 30-Year Commitment Rate	Fees & Points	Average Conventional 15-Year Commitment Rate	Fees & Points
US	6.62	0.4	6.30	0.5
Northeast	6.65	0.2	6.32	0.2
Southeast	6.57	0.5	6.28	0.6
North Central	6.66	0.4	6.35	0.4
Southwest	6.66	0.3	6.35	0.4
West	6.61	0.6	6.27	0.6

Adjustable–Rate Mortgages
	5/1 ARM Commitment Rate	Fees & Points	Margin	1 Year ARM Commitment Rate	Fees & Points	Margin
US	6.35	0.5	2.75	5.67	0.6	2.75
Northeast	6.36	0.5	2.76	5.67	0.5	2.76
Southeast	6.38	0.6	2.76	5.67	0.8	2.76
North Central	6.44	0.5	2.77	5.69	0.5	2.76
Southwest	6.43	0.5	2.75	5.66	0.3	2.80
West	6.27	0.5	2.72	5.65	0.6	2.71

Freddie Mac Region	PMMS Weights
Northeast	24.5
Southeast	18.6
North Central	15.4
Southwest	10.4
West	31.0

30-YEAR FIXED RATE MORTGAGES


	US	NE	SE	NC	SW	W
AVERAGE	6.62	6.65	6.57	6.66	6.66	6.61
Fees & Points	0.4	0.2	0.5	0.4	0.3	0.6

15-YEAR FIXED RATE MORTGAGES


	US	NE	SE	NC	SW	W
AVERAGE	6.30	6.32	6.28	6.35	6.35	6.27
Fees & Points	0.5	0.2	0.6	0.4	0.4	0.6

5/1 ADJUSTABLE RATE MORTGAGES (ARMs)


	US	NE	SE	NC	SW	W
AVERAGE	6.35	6.36	6.38	6.44	6.43	6.27
Fees & Points	0.5	0.5	0.6	0.5	0.5	0.5

1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)


	US	NE	SE	NC	SW	W
AVERAGE	5.67	5.67	5.67	5.69	5.66	5.65
Fees & Points	0.6	0.5	0.8	0.5	0.3	0.6

THE NATIONAL MORTGAGE RATE SNAPSHOT


	One Year Ago
	30-YR FRM	15-YR FRM	5/1 ARM	1-YR ARM
AVERAGE	6.52	6.20	6.18	5.65
Fees & Points	0.3	0.3	0.4	0.5


	One Week Ago
	30-YR FRM	15-YR FRM	5/1 ARM	1-YR ARM
AVERAGE	6.59	6.25	6.33	5.65
Fees & Points	0.4	0.4	0.5	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.