US Mortgage Rates Continue to Climb

Location: McLean
Author: Eileen Fitzpatrick
Date: Friday, December 17, 2010

Freddie Mac (OTC: FMCC) yesterday released the results of its Primary Mortgage Market Survey (PMMS), which found that both fixed- and short-term mortgage rates continued to rise this week. This was the fifth week in a row where fixed-rate mortgage rates were up.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.83 percent with an average 0.7 point for the week ending December 16, 2010, up from last week when it averaged 4.61 percent. Last year at this time, the 30-year FRM averaged 4.94 percent.
  • 15-year FRM this week averaged 4.17 percent with an average 0.7 point, up from last week when it averaged 3.96 percent. A year ago at this time, the 15-year FRM averaged 4.38 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.77 percent this week, with an average 0.7 point, up from last week when it averaged 3.60 percent. A year ago, the 5-year ARM averaged 4.37 percent.
  • 1-year Treasury-indexed ARM averaged 3.35 percent this week with an average 0.7 point, up from last week when it averaged 3.27 percent. At this time last year, the 1-year ARM averaged 4.34 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.

  • "Market concerns over stronger economic growth that, in the near term, could lead to an increase in inflation have sparked a rise in bond yields and mortgage rates have followed. For instance, the growth in retail sales excluding automobiles in November was twice that of the market consensus forecast. Industrial production showed the biggest gain in November since July, according to the Federal Reserve Board. And consumer sentiment, as measured by the Thomson Reuters/University of Michigan index, rose to a six-month high in December. As a result, interest rates for 30-year fixed mortgages this week were the highest since the week of May 20th of this year."

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

4.83

0.7

4.17

0.7

Northeast

4.83

0.6

4.22

0.6

Southeast

4.82

0.7

4.18

0.8

N. Central

4.82

0.6

4.14

0.6

Southwest

4.84

0.7

4.17

0.8

West

4.82

0.8

4.15

0.9

Five/One-Year Adjustable-Rate Mortgages

 

First Commitment Rate

Fees & Points

Margin

US

3.77

0.7

2.74

Northeast

3.84

0.6

2.76

Southeast

3.54

0.6

2.75

N. Central

4.06

0.4

2.73

Southwest

3.65

0.8

2.77

West

3.69

0.8

2.73

One-Year Adjustable-Rate Mortgages

 

First Commitment Rate

Fees & Points

Margin

US

3.35

0.7

2.76

Northeast

3.33

0.6

2.79

Southeast

3.18

0.7

2.75

N. Central

3.71

0.4

2.75

Southwest

3.35

0.8

2.77

West

3.25

0.8

2.75

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 16, 2010

30-Year Fixed Rate Mortgages

 

US

NE

SE

NC

SW

W

Average

4.83

4.83

4.82

4.82

4.84

4.82

Fees & Points

0.7

0.6

0.7

0.6

0.7

0.8

15-Year Fixed Rate Mortgages

 

US

NE

SE

NC

SW

W

Average

4.17

4.22

4.18

4.14

4.17

4.15

Fees & Points

0.7

0.6

0.8

0.6

0.8

0.9

5/1-Year Adjustable Rate Mortgages

 

US

NE

SE

NC

SW

W

Average

3.77

3.84

3.54

4.06

3.65

3.69

Fees & Points

0.7

0.6

0.6

0.4

0.8

0.8

Margin

2.74

2.76

2.75

2.73

2.77

2.73

1-Year Adjustable Rate Mortgages

 

US

NE

SE

NC

SW

W

Average

3.35

3.33

3.18

3.71

3.35

3.25

Fees & Points

0.7

0.6

0.7

0.4

0.8

0.8

Margin

2.76

2.79

2.75

2.75

2.77

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

4.94  

4.38  

4.37  

4.34  

4.61  

3.96  

3.60  

3.27  

Fees & Points

0.7  

0.6  

0.6  

0.5  

0.7  

0.7  

0.6  

0.6  

Margin

N/A

N/A

2.74  

2.75  

N/A

N/A

2.75  

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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