US Long-Term Rates Down for Third Consecutive Week

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.04 percent with an average 0.7 point for the week ending September 17, 2009, down from last week when it averaged 5.07 percent.  Last year at this time, the 30-year FRM averaged 5.78 percent.  The last time the 30-year FRM was lower was the week ending May 28, 2009, when it averaged 4.91 percent.

The 15-year FRM this week averaged 4.47 percent with an average 0.6 point, downfrom last week when it averaged 4.50 percent.  A year ago at this time, the 15-year FRM averaged 5.35 percent.  This is the lowest the 15-year FRM has been since Freddie Mac started tracking it in 1991.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.51 percent this week, with an average 0.5 point, upfrom last week when it averaged 4.51 percent.  A year ago, the 5-year ARM averaged 5.67 percent.

The one-year Treasury-indexed ARM averaged 4.58 percent this week with an average 0.5 point, downfrom last week when it averaged 4.64 percent.  At this time last year, the 1-year ARM averaged 5.03 percent.

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

“Interest rates for fixed-rate mortgages eased for the third consecutive week and remained at 3-month lows,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Interest rates for 30-year fixed-rate mortgages have averaged just above 5 percent through mid-September, which is roughly a percentage point below last year’s average and suggests that 2009 may reach a record annual low since the survey began in 1971.

“Low mortgage rates are aiding new home construction.  Housing starts for single family homes have increased consecutively over the five past months ending in July, although starts eased slightly in August.  Moreover, homebuilder confidence improved for the third straight month in September, with all four regions showing positive gains, according the National Association of Home Builder’s Housing Market Index.”

PRIMARY MORTGAGE MARKET SURVEY RESULTS

30-YEAR FIXED RATE MORTGAGES

15-YEAR FIXED RATE MORTGAGES

5/1 ADJUSTABLE RATE MORTGAGES (ARMs)

Margin                        2.74                2.73               2.75                2.74                2.77             2.73

1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)

Margin                        2.75                2.74               2.75                2.73                2.83             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.