Once Again All US Rates But 1-Year ARM Hit Yet Another Record Low

Location: McLean
Author: Eileen Fitzpatrick
Date: Friday, July 2, 2010
 

Freddie Mac (NYSE:FRE) yesterdaty released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.58 percent with an average 0.7 point for the week ending July 1, 2010, down from last week when it averaged 4.69 percent. Last year at this time, the 30-year FRM averaged 5.32 percent.

The 15-year FRM this week averaged 4.04 percent with an average 0.7 point, down from last week when it averaged 4.13 percent. A year ago at this time, the 15-year FRM averaged 4.77 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.79 percent this week, with an average 0.7 point, down from last week when it averaged 3.84 percent. A year ago, the 5-year ARM averaged 4.88 percent.

The 1-year Treasury-indexed ARM averaged 3.80 percent this week with an average 0.7 point, up from last week when it averaged 3.77 percent. At this time last year, the 1-year ARM averaged 4.94 percent.

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

“Interest rates on fixed-rate mortgages and the 5-year hybrid ARM fell once again to all-time record lows this week in a period where the economy struggles to gain momentum and inflation remains very low,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Growth estimates for first quarter GDP were revised down by a half percentage point over the past two months to 2.7 percent, according to the Bureau of Economic Analysis. Annual inflation, as measured by the 12-month change in the core CPI, held at 0.9 percent in April and May, which is the slowest pace in over 44 years, as reported by the Bureau of Labor Statistics.

“Meanwhile, house prices are improving due in part to the homebuyer tax credit. The S&P/Case-Shiller® 20-city home price index grew 0.4 percent between March and April and was up 3.9 percent from April 2009, representing the largest annual gain since October 2006. Moreover, 17 of the metropolitan areas experienced monthly gains in April, compared to 10 in March and six in February.”

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 4.58 0.7 4.04 0.7
Northeast 4.63 0.7 4.05 0.7
Southeast 4.61 0.8 4.06 0.8
N. Central 4.63 0.5 4.11 0.6
Southwest 4.54 0.6 4.05 0.6
West 4.52 0.8 3.99 0.7
Five/One-Year Adjustable-Rate Mortgages
  First Commitment Rate Fees & Points Margin
US 3.79 0.7 2.75
Northeast 3.97 0.6 2.74
Southeast 3.58 0.7 2.75
N. Central 3.82 0.6 2.73
Southwest 3.89 0.7 2.78
West 3.70 0.7 2.75
One-Year Adjustable-Rate Mortgages
  First Commitment Rate Fees & Points Margin
US 3.80 0.7 2.75
Northeast 3.88 0.6 2.74
Southeast 3.63 0.9 2.75
N. Central 4.03 0.5 2.73
Southwest 4.07 0.8 2.80
West 3.58 0.7 2.75
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
July 1, 2010

30-Year Fixed Rate Mortgages
  US NE SE NC SW W
Average 4.58 4.63 4.61 4.63 4.54 4.52
Fees & Points 0.7 0.7 0.8 0.5 0.6 0.8
15-Year Fixed Rate Mortgages
  US NE SE NC SW W
Average 4.04 4.05 4.06 4.11 4.05 3.99
Fees & Points 0.7 0.7 0.8 0.6 0.6 0.7
5/1-Year Adjustable Rate Mortgages
  US NE SE NC SW W
Average 3.79 3.97 3.58 3.82 3.89 3.70
Fees & Points 0.7 0.6 0.7 0.6 0.7 0.7
Margin 2.75 2.74 2.75 2.73 2.78 2.75
1-Year Adjustable Rate Mortgages
  US NE SE NC SW W
Average 3.80 3.88 3.63 4.03 4.07 3.58
Fees & Points 0.7 0.6 0.9 0.5 0.8 0.7
Margin 2.75 2.74 2.75 2.73 2.80 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 5.32   4.77   4.88   4.94   4.69   4.13   3.84   3.77  
Fees & Points 0.7   0.7   0.7   0.6   0.7   0.6   0.7   0.7  
Margin N/A N/A 2.74   2.75   N/A N/A 2.74   2.74  
                           

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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