US Fixed-Rates Down Slightly While ARMs Are Mixed

Freddie Mac (NYSE:FRE) last week released the results of its Primary Mortgage Market Survey (PMMS)  in which the 30-year fixed-rate mortgage (FRM) averaged 5.06 percent with an average 0.7 point for the week ending January 14, 2010, down from last week when it averaged 5.09 percent.  Last year at this time, the 30-year FRM averaged 4.96 percent. 

The 15-year FRM this week averaged 4.45 percent with an average 0.6 point, down from last week when it averaged 4.50 percent.  A year ago at this time, the 15-year FRM averaged 4.65 percent. 

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.32 percent this week, with an average 0.6 point, downfrom last week when it averaged 4.44 percent.  A year ago, the 5-year ARM averaged 5.25 percent. 

The 1-year Treasury-indexed ARM averaged 4.39 percent this week with an average 0.5 point, upfrom last week when it averaged 4.31 percent.  At this time last year, the 1-year ARM averaged 4.89 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 a little further this week, while ARM rates were mixed,” said Frank Nothaft, Freddie Mac vice president and chief economist.  “With fixed mortgage rates staying near a record low, many homeowners are taking the opportunity to refinance.  For instance, over the past three-and-a-half months, on average more than 75 percent of conventional mortgage applications were for refinance transactions, according to the Mortgage Bankers Association.

“The Federal Reserve recently reported positive news in both the housing market and the overall state of the economy in its January 13th regional economic report, which spanned the last few months of 2009. Economic activity improved in 10 of its 12 districts. Home sales, especially for lower-priced homes, increased due in part to the homebuyer tax credit and house prices appeared to have changed little since its last report.”

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

Primary Mortgage Market Survey Results
January 14, 2010

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.