US Mortgage Rates Fall to Lowest Level in Four WeeksLocation: McLean
The 15-year FRM this week
averaged 5.68 percent with an average 0.6 point, downfrom last week when
it averaged 5.79 percent. A year ago at this time, the 15-year FRM
averaged 5.94 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.78 percent this week, with an average 0.5 point, down from last week when it averaged 5.90 percent. A year ago, the 5-year ARM averaged 6.02 percent. One-year Treasury-indexed ARMs averaged 5.47 percent this week with an average 0.5 point, downfrom last week when it was 5.53 percent. At this time last year, the 1-year ARM averaged 5.42 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) “The new year has begun with mixed signals on the direction of the economy and mortgage market,” said Frank Nothaft, Freddie Mac vice president and chief economist. “On the downside, the Institute for Supply Management’s index of manufacturing activity showed significant contraction in this sector, perhaps a harbinger of a more substantial economic slowdown to begin this year. On the upside, the Conference Board reported that consumer confidence rose in December for the first time in five months, with more positive expectations for the next six months. Furthermore, interest rates have moved lower with average 30-year fixed-rate mortgage rates down about a tenth of a percentage point, the lowest in four weeks.” “The latest home sales data also sent mixed messages on the direction of housing activity towards the end of 2007. The mostly grave home sales reports came with a few light notes. While new home sales fell in November to the slowest pace since April 1995, existing home sales rose by a small margin to an annual pace of 5 million units. Our latest forecast has total home sales continuing to decline in the first quarter of the year before starting a slow recovery; still, sales of new and existing houses are projected to be 5.09 million in 2008, a decline of more than 11 percent from the previous year.”
PRIMARY MORTGAGE MARKET SURVEY RESULTS 30-YEAR FIXED RATE MORTGAGES
15-YEAR FIXED RATE MORTGAGES
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.75 2.75 2.76 2.76 2.78 2.74 1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.73 2.72 2.75 2.74 2.80 2.71 THE NATIONAL MORTGAGE RATE SNAPSHOT
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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