Better than Expected Economic Reports Help Keep US Mortgage Rates Low This WeekLocation: McLean 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 5.22 percent with an average 0.6 point for the week ending August 6, 2009, downfrom last week when it averaged 5.25 percent. Last year at this time, the 30-year FRM averaged 6.52 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.73 percent this week, with an average 0.6 point, downfrom last week when it averaged 4.75 percent. A year ago, the 5-year ARM averaged 6.05 percent. One-year Treasury-indexed ARMs averaged 4.78 percent this week with an average 0.5 point, down from last week when it averaged 4.80 percent. At this time last year, the 1-year ARM averaged 5.22 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) “Better-than-expected economic reports helped to keep mortgage rates low this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The economy slowed by an annual rate of 1 percent in the second quarter, which was more positive than market forecasts.” “Homebuyer demand improved as well, aided by high levels of housing affordability. The first half of this year contained the top six months with the most affordable housing conditions since the National Association of Realtors® (NAR) began calculating its Housing Affordability Index in January 1971. As a result, pending existing home sales rose for five consecutive months ending in June, a trend not seen since July 2003. In June, a typical family would have devoted 15.7 percent of their gross income to mortgage principal and interest payments, the NAR explained.”
PRIMARY MORTGAGE MARKET SURVEY RESULTS 30-YEAR FIXED RATE MORTGAGES
15-YEAR FIXED RATE MORTGAGES
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.74 2.74 2.75 2.74 2.75 2.73 1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.75 2.75 2.75 2.75 2.78 2.75 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. In general, the data presented were calculated from information collected Monday through Wednesday of the same week that the PMMS is released and may not reflect mortgage rates, fees or points currently available from any lender. Freddie Mac may change the methodology used to conduct the PMMS survey at any time and without notice.
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