US Mortgage Rates Jump to Highest Level in Nearly Eight Months
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, June 13, 2008
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.70 percent this week, with an average 0.7 point, up from last week when it averaged 5.51 percent. A year ago, the 5-year ARM averaged 6.37 percent.
One-year Treasury-indexed ARMs averaged 5.09 percent this week with an average 0.6 point, up from last week when it was 5.06 percent. At this time last year, the 1-year ARM averaged 5.75 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Mortgage rates jumped this week after a number of Federal Reserve (Fed) officials, most notably Chairman Bernanke and Vice Chair Kohn, expressed concern over a threat of inflation,” said Frank Nothaft, Freddie Mac vice president and chief economist. “This led some market participants to believe that the Fed will raise rates more aggressively over the year than previously thought.
“Meanwhile, news reports on the housing market were mixed. Serious delinquencies (loans over due 90-days or more or in foreclosure) for both prime and subprime conventional mortgages nearly doubled between first quarter of 2007 and 2008, according to the Mortgage Bankers Association. However, the household debt service and homeowner financial obligation ratios improved over the same period. Moreover, pending home sales for April unexpectedly rose by 6.3 percent and mortgage applications for both home purchases and refinancing were also up last week.”
|
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 |
6.32 |
6.35 |
6.27 |
6.36 |
6.36 |
6.31 |
| Fees & Points |
0.7 |
0.5 |
0.8 |
0.4 |
0.6 |
0.8 |
15-YEAR FIXED RATE MORTGAGES
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.93 |
5.93 |
5.88 |
5.97 |
5.97 |
5.95 |
| Fees & Points |
0.6 |
0.5 |
0.8 |
0.4 |
0.6 |
0.7 |
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.70 |
5.62 |
5.64 |
5.88 |
5.79 |
5.69 |
| Fees & Points |
0.7 |
0.5 |
0.9 |
0.4 |
0.6 |
0.7 |
Margin 2.76 2.77 2.75 2.79 2.78 2.74
1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.09 |
5.00 |
5.16 |
4.93 |
5.39 |
5.09 |
| Fees & Points |
0.6 |
0.3 |
0.8 |
0.5 |
0.5 |
0.8 |
Margin 2.75 2.75 2.75 2.73 2.82 2.75
THE NATIONAL MORTGAGE RATE SNAPSHOT
|
|
||||
|
|
One Year Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.74 |
6.43 |
6.37 |
5.75 |
| Fees & Points |
0.4 |
0.4 |
0.5 |
0.7 |
|
|
||||
|
|
One Week Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.09 |
5.65 |
5.51 |
5.06 |
| Fees & Points |
0.6 |
0.6 |
0.5 |
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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