US 30-Year Rates Match All Time Low Last Week

Location: McLean
Author: Eileen Fitzpatrick
Date: Monday, November 30, 2009

Freddie Mac (NYSE:FRE) last week released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78 percent with an average 0.7 point for the week ending November 25, 2009, down from last week when it averaged 4.83 percent. Last year at this time, the 30-year FRM averaged 5.97 percent. The 30-year has not been this low since the week ending April 30, 2009, when it averaged 4.78 percent.

The 15-year FRM this week averaged 4.29 percent with an average 0.6 point, down from last week when it averaged 4.32 percent. A year ago at this time, the 15-year FRM averaged 5.74 percent. The 15-year FRM has never been this low since Freddie Mac started tracking it in 1991.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.18 percent this week, with an average 0.6 point, down from last week when it averaged 4.25 percent. A year ago, the 5-year ARM averaged 5.86 percent. The 5-year ARM has never been this low since Freddie Mac started tracking it in 2005.

The 1-year Treasury-indexed ARM averaged 4.35 percent this week with an average 0.7 point, unchanged from last week when it averaged 4.35 percent. At this time last year, the 1-year ARM averaged 5.18 percent. The 1-year ARM has not been this low since the week ending July 7, 2005, when it averaged 4.33 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"Long-term mortgage rates eased for the fourth consecutive week to record levels," said Frank Nothaft, Freddie Mac vice president and chief economist." Interest rates for 30-year fixed mortgage loans tied an all-time record low while both 15-year fixed mortgages and 5-year ARMs broke their corresponding records. Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year's peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage.

"House prices are slowly beginning to firm now. For instance, annual house price declines slowed for the sixth consecutive month in September, down only 3 percent, and represented the smallest decline since February 2008, according the Federal Housing Finance Agency's purchase-only house price index. [PDF] Moreover, 11 of the 20 major metropolitan areas experienced monthly house price increases between August and September, based on the S&P/Case-Shiller® 20-city house price indexes."

Summary of Survey Results

Fixed-Rate Mortgages
	Average Conventional 30-Year Commitment Rate			Fees & Points		Average Conventional 15-Year Commitment Rate		Fees & Points
US	4.78			0.7		4.29		0.6
Northeast	4.78			0.7		4.28		0.6
Southeast	4.75			0.7		4.29		0.7
N. Central	4.84			0.7		4.30		0.6
Southwest	4.80			0.6		4.33		0.6
West	4.77			0.8		4.28		0.6
Five/One-Year Adjustable-Rate Mortgages
		First Commitment Rate			Fees & Points		Margin
US		4.18			0.6		2.74
Northeast		4.30			0.4		2.73
Southeast		4.04			0.7		2.75
N. Central		4.17			0.9		2.75
Southwest		4.25			0.5		2.76
West		4.16			0.6		2.73
One-Year Adjustable-Rate Mortgages
		First Commitment Rate			Fees & Points		Margin
US		4.35			0.7		2.75
Northeast		4.09			0.6		2.73
Southeast		4.53			0.7		2.75
N. Central		4.75			0.7		2.75
Southwest		4.17			0.9		2.79
West		4.33			0.7		2.75
Freddie Mac Region			PMMS Weights
Northeast			24.2
Southeast			19.8
North Central			15.1
Southwest			12.7
West			28.2

Primary Mortgage Market Survey Results
November 25, 2009

30-Year Fixed Rate Mortgages
		US		NE			SE		NC		SW		W
Average		4.78		4.78			4.75		4.84		4.80		4.77
Fees & Points		0.7		0.7			0.7		0.7		0.6		0.8
15-Year Fixed Rate Mortgages
		US		NE			SE		NC		SW		W
Average		4.29		4.28			4.29		4.30		4.33		4.28
Fees & Points		0.6		0.6			0.7		0.6		0.6		0.6
5/1-Year Adjustable Rate Mortgages
		US		NE			SE		NC		SW		W
Average		4.18		4.30			4.04		4.17		4.25		4.16
Fees & Points		0.6		0.4			0.7		0.9		0.5		0.6
Margin		2.74		2.73			2.75		2.75		2.76		2.73
1-Year Adjustable Rate Mortgages
		US		NE			SE		NC		SW		W
Average		4.35		4.09			4.53		4.75		4.17		4.33
Fees & Points		0.7		0.6			0.7		0.7		0.9		0.7
Margin		2.75		2.73			2.75		2.75		2.79		2.75
The National Mortgage Rate Snapshot
	One Year Ago							One Week Ago
	30-YR		15-YR		5/1-YR	1-YR ARM		30-YR		15-YR		5/1-YR	1-YR ARM
Average	5.97		5.74		5.86	5.18		4.83		4.32		4.25	4.35
Fees & Points	0.7		0.7		0.6	0.5		0.7		0.6		0.6	0.6
Margin	N/A		N/A		2.75	2.75		N/A		N/A		2.74	2.75

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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