US Long-Term Rates Fall to Lowest Level in Five Weeks

Location: McLean
Author: Eileen Fitzpatrick
Date: Friday, November 13, 2009
 

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 4.91 percent with an average 0.7 point for the week ending November 12, 2009, down from last week when it averaged 4.98 percent.  Last year at this time, the 30-year FRM averaged 6.14 percent.

The 15-year FRM this week averaged 4.36 percent with an average 0.6 point, downfrom last week when it averaged 4.40 percent.  A year ago at this time, the 15-year FRM averaged 5.81 percent. 

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.29 percent this week, with an average 0.6 point, downfrom last week when it averaged 4.35 percent.  A year ago, the 5-year ARM averaged 5.98 percent. 

The one-year Treasury-indexed ARM averaged 4.46 percent this week with an average 0.6 point, downfrom last week when it averaged 4.47 percent.  At this time last year, the 1-year ARM averaged 5.33 percent.

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

“Mortgage rates eased further over the week, helping to promote an affordable home-purchase market and stimulate refinance,” said Frank Nothaft, Freddie Mac vice president and chief economist.  “This comes at a time when house price declines are moderating and consumer demand for prime mortgages at commercial banks has picked up.

“The National Association of Realtors® reported that national median sales price of existing homes fell 11.2 percent in the third quarter relative to the same period last year.  Moreover, almost 20 percent of the top metropolitan areas experienced positive annual growth, compared to only about 12 percent in the first quarter of this year.”

Summary of Survey Results

Fixed-Rate Mortgages
  Average Conventional 30-Year Commitment Rate Fees & Points Average Conventional 15-Year Commitment Rate Fees & Points
US  4.91  0.7  4.36  0.6
Northeast  4.92  0.7  4.37  0.6
Southeast  4.92  0.6  4.35  0.6
N. Central  4.96  0.6  4.38  0.6
Southwest  4.90  0.5  4.37  0.5
West  4.88  0.8  4.35  0.7
Five/One-Year Adjustable-Rate Mortgages
  First Commitment Rate Fees & Points Margin  
US  4.29  0.6  2.74  
Northeast  4.43  0.4  2.73  
Southeast  4.05  0.6  2.75  
N. Central  4.67  0.6  2.75  
Southwest  4.24  0.5  2.76  
West  4.15  0.7  2.73  
One-Year Adjustable-Rate Mortgages
  First Commitment Rate Fees & Points Margin  
US  4.46  0.6  2.75  
Northeast  4.23  0.3  2.73  
Southeast  4.70  0.6  2.75  
N. Central  4.83  0.7  2.75  
Southwest  4.29  0.6  2.79  
West  4.36  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 12, 2009

30-Year Fixed Rate Mortgages
  US NE SE NC SW W
Average  4.91  4.92  4.92  4.96  4.90  4.88
Fees & Points  0.7  0.7  0.6  0.6  0.5  0.8
15-Year Fixed Rate Mortgages
  US NE SE NC SW W
Average  4.36  4.37  4.35  4.38  4.37  4.35
Fees & Points  0.6  0.6  0.6  0.6  0.5  0.7
5/1-Year Adjustable Rate Mortgages
  US NE SE NC SW W
Average  4.29  4.43  4.05  4.67  4.24  4.15
Fees & Points  0.6  0.4  0.6  0.6  0.5  0.7
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  4.46  4.23  4.70  4.83  4.29  4.36
Fees & Points  0.6  0.3  0.6  0.7  0.6  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  6.14  5.81  5.98  5.33  4.98  4.40  4.35  4.47
Fees & Points  0.7  0.7  0.6  0.5  0.7  0.6  0.6  0.5
Margin N/A N/A  2.74  2.74 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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