US Mortgage Rates Ease Up Slightly as Market Turmoil Continues
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, October 5, 2007
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.11 percent this week, with an average 0.5 point, down from last week when it averaged 6.15 percent. A year ago, the 5-year ARM averaged 6.00 percent.
One-year Treasury-indexed ARMs averaged 5.58 percent this week with an average 0.6 point, down from last week when it averaged 5.60 percent. At this time last year, the 1-year ARM averaged 5.46 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Mortgage rates eased slightly this week following three weeks of increases. The initial effects of the credit market turmoil that began in August are starting to emerge in housing statistics,” said Frank Nothaft, Freddie Mac vice president and chief economist. “New home sales in August fell to the slowest pace in more than seven years and the median sales price had the largest twelve-month decline since 1970. Moreover, August’s pending existing home sales fell to the lowest level on record, which begins in 2001.
“Prior to August, the housing sector had already lost 260,000 jobs over the twelve-month period ending July 2007 while the overall economy had a net gain of 1.8 million new non-farm payroll employees. In addition, the housing market (through consumption and investment) shed about a percentage point off of GDP growth for the twelve-month period ending June 2007.”
|
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 |
6.37 |
6.41 |
6.26 |
6.45 |
6.38 |
6.35 |
| Fees & Points |
0.5 |
0.2 |
0.7 |
0.3 |
0.5 |
0.8 |
15-YEAR FIXED RATE MORTGAGES
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
6.03 |
6.10 |
5.93 |
6.11 |
6.06 |
5.99 |
| Fees & Points |
0.5 |
0.2 |
0.8 |
0.3 |
0.5 |
0.8 |
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
6.11 |
6.15 |
6.04 |
6.23 |
6.09 |
6.07 |
| Fees & Points |
0.6 |
0.4 |
0.7 |
0.4 |
0.6 |
0.8 |
Margin 2.76 2.77 2.76 2.77 2.78 2.73
1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.58 |
5.70 |
5.66 |
5.69 |
5.60 |
5.37 |
| Fees & Points |
0.7 |
0.6 |
0.7 |
0.5 |
0.7 |
0.8 |
Margin 2.75 2.76 2.76 2.78 2.81 2.71
THE NATIONAL MORTGAGE RATE SNAPSHOT
|
|
||||
|
|
One Year Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.30 |
5.98 |
6.00 |
5.46 |
| Fees & Points |
0.3 |
0.4 |
0.5 |
0.7 |
|
|
||||
|
|
One Week Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.42 |
6.09 |
6.15 |
5.60 |
| Fees & Points |
0.5 |
0.5 |
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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