US Mortgage Rates Fall for Second Consecutive Week
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, June 29, 2007
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.30 percent this week, with an average 0.5 point, down from last week when it averaged 6.31 percent. A year ago, the 5-year ARM averaged 6.39 percent.
One-year Treasury-indexed ARMs averaged 5.65 percent this week with an average 0.5 point, down from last week when it averaged 5.66 percent. At this time last year, the 1-year ARM averaged 5.82 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Mortgage rates edged down slightly for the second week in a row after having risen over the previous month and a half, and as financial markets prepared for the June 28th Federal Open Market Committee’s announcement on monetary policy,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“This week we saw further effects of the current housing recession. May’s existing home sales (including condominiums and co-ops) fell 0.3 percent to the slowest pace since June 2003, and the number of months houses were available for sale rose to 8.9, the longest since June 1992. In addition, home prices fell 2.1 percent in twenty metropolitan areas for the year ending April 2007, according to the S&P/Case Shiller® composite index, the largest year-over-year drop since the data began in January 2001.”
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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 | 6.67 | 0.4 | 6.34 | 0.4 | ||||||||
| Northeast | 6.72 | 0.2 | 6.36 | 0.2 | ||||||||
| Southeast | 6.63 | 0.4 | 6.30 | 0.4 | ||||||||
| North Central | 6.71 | 0.3 | 6.38 | 0.3 | ||||||||
| Southwest | 6.69 | 0.4 | 6.36 | 0.4 | ||||||||
| West | 6.65 | 0.6 | 6.32 | 0.6 | ||||||||
|
Adjustable–Rate Mortgages |
||||||||||||
| 5/1 ARM Commitment Rate | Fees & Points |
Margin |
1 Year ARM Commitment Rate | Fees & Points | Margin | |||||||
| US | 6.30 | 0.5 | 2.74 | 5.65 | 0.5 | 2.76 | ||||||
| Northeast | 6.24 | 0.4 | 2.74 | 5.68 | 0.5 | 2.75 | ||||||
| Southeast | 6.33 | 0.5 | 2.74 | 5.54 | 0.7 | 2.75 | ||||||
| North Central | 6.44 | 0.3 | 2.74 | 5.82 | 0.3 | 2.75 | ||||||
| Southwest | 6.35 | 0.5 | 2.76 | 5.90 | 0.5 | 2.81 | ||||||
| West | 6.26 | 0.6 | 2.75 | 5.54 | 0.6 | 2.75 | ||||||
|
Freddie Mac Region |
PMMS Weights |
|
Northeast |
24.5 |
|
Southeast |
18.6 |
|
North Central |
15.4 |
|
Southwest |
10.4 |
|
West |
31.0 |
PRIMARY MORTGAGE MARKET SURVEY RESULTS
30-YEAR FIXED RATE MORTGAGES
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
6.67 |
6.72 |
6.63 |
6.71 |
6.69 |
6.65 |
| Fees & Points |
0.4 |
0.2 |
0.4 |
0.3 |
0.4 |
0.6 |
15-YEAR FIXED RATE MORTGAGES
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
6.34 |
6.36 |
6.30 |
6.38 |
6.36 |
6.32 |
| Fees & Points |
0.4 |
0.2 |
0.4 |
0.3 |
0.4 |
0.6 |
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
6.30 |
6.24 |
6.33 |
6.44 |
6.35 |
6.26 |
| Fees & Points |
0.5 |
0.4 |
0.5 |
0.3 |
0.5 |
0.6 |
1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.65 |
5.68 |
5.54 |
5.82 |
5.70 |
5.54 |
| Fees & Points |
0.5 |
0.5 |
0.7 |
0.3 |
0.5 |
0.6 |
THE NATIONAL MORTGAGE RATE SNAPSHOT
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|
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|
|
One Year Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.78 |
6.43 |
6.39 |
5.82 |
| Fees & Points |
0.5 |
0.5 |
0.5 |
0.8 |
|
|
||||
|
|
One Week Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.69 |
6.37 |
6.31 |
5.66 |
| Fees & Points |
0.5 |
0.5 |
0.6 |
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.
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