US Mortgage Rates Flat
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, April 18, 2008
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 5.88 percent with an average 0.4 point for the week ending April 17, 2008, unchangedfrom last week when it averaged 5.88 percent. Last year at this time, the 30-year FRM averaged 6.17 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.48 percent this week, with an average 0.6 point, down from last week when it averaged 5.56 percent. A year ago, the 5-year ARM averaged 5.92 percent.
One-year Treasury-indexed ARMs averaged 5.10 percent this week with an average 0.6 point, down from last week when it was 5.18 percent. At this time last year, the 1-year ARM averaged 5.45 percent
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Interest rates for fixed-rate mortgages held relatively steady for a second week, while ARM rates continued to decline amid market speculation that the Federal Reserve (Fed) may cut rates again at its upcoming Committee meeting,” said Frank Nothaft, Freddie Mac vice president and chief economist. “March’s housing starts were the lowest since March 1991 and consumer sentiment in April fell to a 26-year low while homebuilder confidence remains near record lows. Currently, the federal funds future contracts suggest nearly a 100-percent probability that the Fed will cut rates at the end of this month.
“In its current regional review released on April 16th the Fed noted ‘reports on real estate and construction were generally anemic for the residential sector’ and ‘economic conditions have weakened since its last report.’ In addition, San Francisco Fed Bank President suggested, ‘the economy has all but stalled and could even contract over the first half of the year’ in a speech the same day and that the downside risks to growth are significant.”
|
Freddie Mac Region |
PMMS Weights |
|
Northeast |
23.9 |
|
Southeast |
20.4 |
|
North Central |
14.3 |
|
Southwest |
11.0 |
|
West |
30.3 |
PRIMARY MORTGAGE MARKET SURVEY RESULTS
30-YEAR FIXED RATE MORTGAGES
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.88 |
5.91 |
5.86 |
5.93 |
5.89 |
5.87 |
| 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 |
5.40 |
5.46 |
5.36 |
5.44 |
5.42 |
5.38 |
| Fees & Points |
0.5 |
0.2 |
0.5 |
0.4 |
0.5 |
0.7 |
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.48 |
5.52 |
5.47 |
5.53 |
5.43 |
5.46 |
| Fees & Points |
0.6 |
0.6 |
0.6 |
0.5 |
0.7 |
0.7 |
1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.10 |
5.16 |
5.09 |
5.25 |
5.04 |
5.03 |
| Fees & Points |
0.6 |
0.6 |
0.7 |
0.0 |
0.6 |
0.9 |
THE NATIONAL MORTGAGE RATE SNAPSHOT
|
|
||||
|
|
One Year Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.17 |
5.89 |
5.92 |
5.45 |
| Fees & Points |
0.5 |
0.5 |
0.6 |
0.7 |
|
|
||||
|
|
One Week Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
5.88 |
5.42 |
5.56 |
5.18 |
| Fees & Points |
0.4 |
0.4 |
0.6 |
0.7 |
Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters. For additional information about Freddie Mac, visit: www.FreddieMac.com
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