US Bond Yields Rise and So Do Mortgage Rates
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, December 10, 2010
Freddie Mac (OTC:
FMCC) yesterday released the results of its
Primary Mortgage Market Survey®
(PMMS®), which found that once again, both fixed- and short-term
mortgage rates rose this week. This was the fourth week in a row where
fixed-rate mortgage rates were up.
News Facts
-
30-year fixed-rate mortgage (FRM) averaged 4.61 percent with an
average 0.7 point for the week ending December 9, 2010, upfrom last
week when it averaged 4.46 percent. Last year at this time, the
30-year FRM averaged 4.81 percent.
-
15-year FRM this week averaged 3.96 percent with an average 0.7
point, up from last week when it averaged 3.81 percent. A year ago
at this time, the 15-year FRM averaged 4.32 percent.
-
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM)
averaged 3.60 percent this week, with an average 0.6 point, up from
last week when it averaged 3.49 percent. A year ago, the 5-year ARM
averaged 4.26 percent.
-
1-year Treasury-indexed ARM averaged 3.27 percent this week with
an average 0.6 point, up from last week when it averaged 3.25
percent. At this time last year, the 1-year ARM averaged 4.24
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 Frank Nothaft, vice president and chief economist,
Freddie Mac.
- "After Europe made strides in its debt situation, investors left
the security of U.S. Treasury debt causing bond yields to rise and
mortgage rates along with them. Interest rates for 30-year fixed
mortgages are now almost a half percentage point higher than the
record low set in mid-November, which for a $200,000 conventional
loan amounts to $50 more in monthly payments.
- "Housing demand appears to be picking up recently. Existing
pending sales jumped 10.4 percent in October to the strongest pace
since April, according to the
National Association of Realtors®. More recently, mortgage
applications for home purchases rose for the three consecutive weeks
ending on December 3rd, representing a 17.7 percent increase and the
strongest pace since the week of May 7th, based on figures released
by the
Mortgage Bankers Association."
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
|
4.61
|
0.7
|
3.96
|
0.7
|
Northeast
|
4.62
|
0.7
|
3.97
|
0.6
|
Southeast
|
4.58
|
0.7
|
3.96
|
0.6
|
N. Central
|
4.65
|
0.5
|
3.97
|
0.4
|
Southwest
|
4.56
|
0.7
|
3.92
|
0.7
|
West
|
4.62
|
1.0
|
3.95
|
0.9
|
Five/One-Year Adjustable-Rate Mortgages
|
|
First Commitment Rate
|
Fees & Points
|
Margin
|
US
|
3.60
|
0.6
|
2.75
|
Northeast
|
3.69
|
0.5
|
2.76
|
Southeast
|
3.41
|
0.5
|
2.75
|
N. Central
|
3.82
|
0.4
|
2.73
|
Southwest
|
3.51
|
0.8
|
2.78
|
West
|
3.50
|
0.8
|
2.73
|
One-Year Adjustable-Rate Mortgages
|
|
First Commitment Rate
|
Fees & Points
|
Margin
|
US
|
3.27
|
0.6
|
2.77
|
Northeast
|
3.15
|
0.6
|
2.79
|
Southeast
|
3.47
|
0.8
|
2.75
|
N. Central
|
3.66
|
0.3
|
2.73
|
Southwest
|
3.33
|
0.8
|
2.77
|
West
|
3.02
|
0.8
|
2.77
|
Freddie Mac Region
|
PMMS Weights
|
|
Northeast
|
27.1
|
|
Southeast
|
13.6
|
|
North Central
|
17.2
|
|
Southwest
|
12.8
|
|
West
|
29.3
|
|
|
|
|
|
|
|
|
|
Primary Mortgage Market Survey Results
December 9, 2010
30-Year Fixed Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
4.61
|
4.62
|
4.58
|
4.65
|
4.56
|
4.62
|
Fees & Points
|
0.7
|
0.7
|
0.7
|
0.5
|
0.7
|
1.0
|
15-Year Fixed Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.96
|
3.97
|
3.96
|
3.97
|
3.92
|
3.95
|
Fees & Points
|
0.7
|
0.6
|
0.6
|
0.4
|
0.7
|
0.9
|
5/1-Year Adjustable Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.60
|
3.69
|
3.41
|
3.82
|
3.51
|
3.50
|
Fees & Points
|
0.6
|
0.5
|
0.5
|
0.4
|
0.8
|
0.8
|
Margin
|
2.75
|
2.76
|
2.75
|
2.73
|
2.78
|
2.73
|
1-Year Adjustable Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.27
|
3.15
|
3.47
|
3.66
|
3.33
|
3.02
|
Fees & Points
|
0.6
|
0.6
|
0.8
|
0.3
|
0.8
|
0.8
|
Margin
|
2.77
|
2.79
|
2.75
|
2.73
|
2.77
|
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
|
4.81
|
4.32
|
4.26
|
4.24
|
4.46
|
3.81
|
3.49
|
3.25
|
Fees & Points
|
0.7
|
0.6
|
0.5
|
0.7
|
0.8
|
0.7
|
0.6
|
0.6
|
Margin
|
N/A
|
N/A
|
2.74
|
2.76
|
N/A
|
N/A
|
2.75
|
2.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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|