US Mortgage Rates Rise For the First Time in Eight Weeks
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, November
19, 2010
Freddie Mac (OTC:
FMCC) yesterday released the results of its
Primary Mortgage Market Survey
(PMMS), which found that the 30-year fixed-rate mortgage (FRM) and the
15-year (FRM) rose dramatically this week, as did the 5-year ARM. The
1-year ARM remained unchanged from the previous week.
News Facts
-
30-year fixed-rate mortgage (FRM) averaged 4.39 percent with an
average 0.9 point for the week ending November 18, 2010, up from
last week when it averaged 4.17 percent. Last year at this time,
the 30-year FRM averaged 4.83 percent.
-
15-year FRM this week averaged 3.76 percent with an average 0.7
point, up from last week when it averaged 3.57 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 3.40 percent this week, with an average 0.7 point, up from
last week when it averaged 3.25 percent. A year ago, the 5-year ARM
averaged 4.25 percent.
-
1-year Treasury-indexed ARM averaged 3.26 percent this week with
an average 0.6 point, unchanged from last week when it also averaged
3.26 percent. At this time last year, the 1-year ARM averaged 4.35
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.
- “Rates on 30-year fixed-rate mortgages were up to the highest
level since early August and rates on shorter-maturity loans rose as
well, although by somewhat lesser amounts.
Retail sales
rose by nearly twice the consensus in October and represented the
strongest gain since March. Moreover, consumer sentiment, as
measured by the University of Michigan, ticked up in November to the
highest level since June.
- The housing market is showing some potential gains as well.
Although
new construction on one-family homes dipped 1.1 percent in
October, homebuilder confidence rose in November to the strongest
level since June, according to the
NAHB/Wells Fargo Housing Market Index. In addition, median house
prices showed positive annual growth in 77 out of 155 metropolitan
areas in the third quarter of this year, with 11 exhibiting
double-digit increases, according the
National Association of Realtors®; only 30 cities experienced
positive annual gains in the third quarter of 2009.
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
|
4.39
|
0.9
|
3.76
|
0.7
|
Northeast
|
4.37
|
0.8
|
3.79
|
0.6
|
Southeast
|
4.42
|
0.9
|
3.80
|
0.8
|
N. Central
|
4.44
|
0.8
|
3.76
|
0.7
|
Southwest
|
4.41
|
0.8
|
3.79
|
0.7
|
West
|
4.34
|
1.0
|
3.71
|
0.8
|
Five/One-Year Adjustable-Rate Mortgages
|
|
First Commitment Rate
|
Fees & Points
|
Margin
|
US
|
3.40
|
0.7
|
2.75
|
Northeast
|
3.47
|
0.6
|
2.77
|
Southeast
|
3.30
|
0.6
|
2.75
|
N. Central
|
3.40
|
0.6
|
2.72
|
Southwest
|
3.53
|
0.6
|
2.80
|
West
|
3.32
|
0.9
|
2.73
|
One-Year Adjustable-Rate Mortgages
|
|
First Commitment Rate
|
Fees & Points
|
Margin
|
US
|
3.26
|
0.6
|
2.77
|
Northeast
|
3.17
|
0.5
|
2.80
|
Southeast
|
3.05
|
0.6
|
2.75
|
N. Central
|
3.55
|
0.3
|
2.73
|
Southwest
|
3.41
|
0.7
|
2.80
|
West
|
3.20
|
1.0
|
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
November 18, 2010
30-Year Fixed Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
4.39
|
4.37
|
4.42
|
4.44
|
4.41
|
4.34
|
Fees & Points
|
0.9
|
0.8
|
0.9
|
0.8
|
0.8
|
1.0
|
15-Year Fixed Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.76
|
3.79
|
3.80
|
3.76
|
3.79
|
3.71
|
Fees & Points
|
0.7
|
0.6
|
0.8
|
0.7
|
0.7
|
0.8
|
5/1-Year Adjustable Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.40
|
3.47
|
3.30
|
3.40
|
3.53
|
3.32
|
Fees & Points
|
0.7
|
0.6
|
0.6
|
0.6
|
0.6
|
0.9
|
Margin
|
2.75
|
2.77
|
2.75
|
2.72
|
2.80
|
2.73
|
1-Year Adjustable Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.26
|
3.17
|
3.05
|
3.55
|
3.41
|
3.20
|
Fees & Points
|
0.6
|
0.5
|
0.6
|
0.3
|
0.7
|
1.0
|
Margin
|
2.77
|
2.80
|
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
|
4.83
|
4.32
|
4.25
|
4.35
|
4.17
|
3.57
|
3.25
|
3.26
|
Fees & Points
|
0.7
|
0.6
|
0.6
|
0.6
|
0.8
|
0.8
|
0.7
|
0.7
|
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.
To subscribe or visit go to:
http://www.riskcenter.com
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