US Mortgage Rates Near Six-Month Low
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, November 2, 2007
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.98 percent this week, with an average 0.4 point, down from last week when it averaged 6.03 percent. A year ago, the 5-year ARM averaged 6.05 percent. The 5-year ARM has not been this low since the week ending May 17, when it averaged 5.92 percent.
One-year Treasury-indexed ARMs averaged 5.57 percent this week with an average 0.6 point, down from last week when it averaged 5.66 percent. At this time last year, the 1-year ARM averaged 5.53 percent. The 1-year ARM has not been this low since the week ending May 31, 2007, when it averaged 5.57 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“October’s consumer confidence fell to its lowest level since October 2005 as mortgage rates continued to decline this week to their lowest level in almost six months,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Continued market concerns about weaker economic growth and further declines in the housing market have kept mortgage rates low over the last few weeks.
“Although the third quarter gain in real gross domestic product (GDP) of 3.9 percent was stronger than market forecasts, the housing market has subtracted from GDP growth over the past twenty-one months ending in September. In its most recent policy announcement, the Federal Open Market Committee (FOMC) noted that the rate of expansion in the economy will most likely slow in the near term, due in part to a reflection of the intensity of the housing correction.”
|
Freddie Mac Region |
PMMS Weights |
|
Northeast |
23.9 |
|
Southeast |
20.4 |
|
North Central |
14.3 |
|
Southwest |
11.0 |
|
West |
30.3 |
30-YEAR FIXED RATE MORTGAGES
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
6.26 |
6.30 |
6.22 |
6.31 |
6.27 |
6.26 |
| Fees & Points |
0.4 |
0.2 |
0.5 |
0.2 |
0.3 |
0.6 |
15-YEAR FIXED RATE MORTGAGES
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.91 |
5.94 |
5.86 |
5.99 |
5.94 |
5.89 |
| Fees & Points |
0.4 |
0.1 |
0.5 |
0.2 |
0.3 |
0.7 |
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.98 |
6.02 |
6.00 |
6.06 |
6.00 |
5.90 |
| Fees & Points |
0.4 |
0.2 |
0.6 |
0.2 |
0.5 |
0.6 |
Margin 2.75 2.76 2.76 2.75 2.78 2.73
1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.57 |
5.68 |
5.53 |
5.65 |
5.72 |
5.45 |
| Fees & Points |
0.6 |
0.3 |
0.7 |
0.5 |
0.7 |
0.8 |
Margin 2.74 2.74 2.76 2.75 2.83 2.71
THE NATIONAL MORTGAGE RATE SNAPSHOT
|
|
||||
|
|
One Year Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.31 |
6.02 |
6.05 |
5.53 |
| Fees & Points |
0.4 |
0.4 |
0.5 |
0.6 |
|
|
||||
|
|
One Week Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.33 |
5.99 |
6.03 |
5.66 |
| Fees & Points |
0.5 |
0.6 |
0.5 |
0.6 |
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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