US Long-Term Mortgage Rates Fall for the Ninth Week Out of Ten
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, August 27, 2010
News Facts
- 30-year fixed-rate mortgage (FRM) averaged 4.36 percent with an average 0.7 point for the week ending August 26, 2010, down from last week when it averaged 4.42 percent. Last year at this time, the 30-year FRM averaged 5.14 percent.
- 15-year FRM this week averaged a record low of 3.86 percent with an average 0.6 point, down from last week when it averaged 3.90 percent. A year ago at this time, the 15-year FRM averaged 4.58 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.56 percent this week, with an average 0.6 point, unchanged from last week when it also averaged 3.56 percent. A year ago, the 5-year ARM averaged 4.67 percent.
- 1-year Treasury-indexed ARM averaged 3.52 percent this week with an average 0.7 point, down slightly from last week when it also averaged 3.53 percent. At this time last year, the 1-year ARM averaged 4.69 percent.
Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
Quotes
Attributed to Amy Crews Cutts, deputy chief economist, Freddie Mac.
- "Existing home sales plunged 27 percent in July, while new homes fell 12 percent to a new all-time record low, which led to some market concerns that the housing market may slow the economic recovery. As a result, long-term bond yields fell to the lowest levels since January 2009, allowing fixed mortgage rates to ease to new record lows this week.
- "Much of the slowdown in sales, however, was expected due to the recently expired homebuyer tax programs, which pulled through future home purchases into the first half of the year. For instance, average existing home sales over the first seven months of 2010 were nearly 8 percent higher than over the same period a year ago.
- "Moreover, house prices still appear to be stabilizing. Nationally, house prices rose 0.9 percent on a seasonally-adjusted basis during the second quarter of this year this year after 11 consecutive quarterly declines, according to the Federal Housing Finance Agency's purchase only index. Eight of the nine census regions experienced positive gains, compared to none in the first quarter."
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
Summary of Survey Results
| Fixed-Rate Mortgages | |||||||
| Average Conventional 30-Year Commitment Rate |
Fees & Points | Average Conventional 15-Year Commitment Rate |
Fees & Points | ||||
| US | 4.36 | 0.7 | 3.86 | 0.6 | |||
| Northeast | 4.37 | 0.6 | 3.91 | 0.6 | |||
| Southeast | 4.42 | 0.7 | 3.90 | 0.7 | |||
| N. Central | 4.36 | 0.5 | 3.84 | 0.5 | |||
| Southwest | 4.42 | 0.6 | 3.92 | 0.6 | |||
| West | 4.28 | 0.8 | 3.78 | 0.6 | |||
| Five/One-Year Adjustable-Rate Mortgages | |||||||
| First Commitment Rate | Fees & Points | Margin | |||||
| US | 3.56 | 0.6 | 2.75 | ||||
| Northeast | 3.72 | 0.5 | 2.75 | ||||
| Southeast | 3.40 | 0.6 | 2.75 | ||||
| N. Central | 3.49 | 0.5 | 2.73 | ||||
| Southwest | 3.67 | 0.8 | 2.78 | ||||
| West | 3.49 | 0.8 | 2.74 | ||||
| One-Year Adjustable-Rate Mortgages | |||||||
| First Commitment Rate | Fees & Points | Margin | |||||
| US | 3.52 | 0.7 | 2.78 | ||||
| Northeast | 3.57 | 0.6 | 2.81 | ||||
| Southeast | 3.61 | 0.8 | 2.75 | ||||
| N. Central | 3.35 | 0.5 | 2.75 | ||||
| Southwest | 3.59 | 0.8 | 2.80 | ||||
| West | 3.48 | 1.0 | 2.77 | ||||
| Freddie Mac Region | PMMS Weights | ||||||
| Northeast | 26.0 | ||||||
| Southeast | 16.7 | ||||||
| North Central | 15.9 | ||||||
| Southwest | 13.2 | ||||||
| West | 28.2 | ||||||
Primary Mortgage Market Survey Results
August 26, 2010
| 30-Year Fixed Rate Mortgages | |||||||||||||
| US | NE | SE | NC | SW | W | ||||||||
| Average | 4.36 | 4.37 | 4.42 | 4.36 | 4.42 | 4.28 | |||||||
| Fees & Points | 0.7 | 0.6 | 0.7 | 0.5 | 0.6 | 0.8 | |||||||
| 15-Year Fixed Rate Mortgages | |||||||||||||
| US | NE | SE | NC | SW | W | ||||||||
| Average | 3.86 | 3.91 | 3.90 | 3.84 | 3.92 | 3.78 | |||||||
| Fees & Points | 0.6 | 0.6 | 0.7 | 0.5 | 0.6 | 0.6 | |||||||
| 5/1-Year Adjustable Rate Mortgages | |||||||||||||
| US | NE | SE | NC | SW | W | ||||||||
| Average | 3.56 | 3.72 | 3.40 | 3.49 | 3.67 | 3.49 | |||||||
| Fees & Points | 0.6 | 0.5 | 0.6 | 0.5 | 0.8 | 0.8 | |||||||
| Margin | 2.75 | 2.75 | 2.75 | 2.73 | 2.78 | 2.74 | |||||||
| 1-Year Adjustable Rate Mortgages | |||||||||||||
| US | NE | SE | NC | SW | W | ||||||||
| Average | 3.52 | 3.57 | 3.61 | 3.35 | 3.59 | 3.48 | |||||||
| Fees & Points | 0.7 | 0.6 | 0.8 | 0.5 | 0.8 | 1.0 | |||||||
| Margin | 2.78 | 2.81 | 2.75 | 2.75 | 2.80 | 2.77 | |||||||
| 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 | 5.14 | 4.58 | 4.67 | 4.69 | 4.42 | 3.90 | 3.56 | 3.53 | |||||
| Fees & Points | 0.7 | 0.7 | 0.6 | 0.6 | 0.7 | 0.6 | 0.6 | 0.7 | |||||
| Margin | N/A | N/A | 2.74 | 2.73 | N/A | N/A | 2.74 | 2.77 | |||||
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 at any time and without notice.
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