US Mortgage Rates Continue to Fall According to Freddie Mac's Weekly
Survey
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, October 8, 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 rate dropped yet again to break the
survey's all-time low; the 15-year fixed-rate did the same. The 5-year
ARM also set an all-time survey low.
News Facts
- 30-year fixed-rate mortgage (FRM) averaged 4.27 percent with an
average 0.8 point for the week ending October 7, 2010, down from
last week when it averaged 4.32 percent. Last year at this time, the
30-year FRM averaged 4.87 percent.
- 15-year FRM this week averaged a record low of 3.72 percent with
an average 0.7 point, down from last week when it averaged 3.75
percent. A year ago at this time, the 15-year FRM averaged 4.33
percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM)
averaged 3.47 percent this week, with an average 0.6 point, down
from last week when it averaged 3.52 percent. A year ago, the 5-year
ARM averaged 4.35 percent.
- 1-year Treasury-indexed ARM averaged 3.40 percent this week with
an average 0.7 point, down from last week when it averaged 3.48
percent. At this time last year, the 1-year ARM averaged 4.53
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.
- "The 12-month growth rate in the
core price index for
personal consumption, which the Federal Reserve closely tracks,
has been drifting lower over the past six months ending in August
and suggests inflation is running at a tepid pace at best. This
allowed mortgage rates to ease to new or near record lows this week.
- "Housing affordability increased for the second month in a row
in August to tie April's level, according to the
National Association of Realtors® (NAR). As a result, pending
existing home sales also rose for the second consecutive month in
August to the strongest pace in four months, the
NAR also reported. Furthermore, since the end of August,
mortgage applications for home purchases were up over 14 percent for
the week ended October 1st."
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
|
4.27
|
0.8
|
3.72
|
0.7
|
Northeast
|
4.30
|
0.7
|
3.75
|
0.6
|
Southeast
|
4.33
|
0.8
|
3.75
|
0.8
|
N. Central
|
4.27
|
0.7
|
3.64
|
0.6
|
Southwest
|
4.27
|
0.7
|
3.75
|
0.7
|
West
|
4.23
|
0.9
|
3.71
|
0.8
|
Five/One-Year Adjustable-Rate Mortgages
|
|
First Commitment Rate
|
Fees & Points
|
Margin
|
US
|
3.47
|
0.6
|
2.74
|
Northeast
|
3.63
|
0.5
|
2.75
|
Southeast
|
3.28
|
0.6
|
2.75
|
N. Central
|
3.55
|
0.4
|
2.72
|
Southwest
|
3.52
|
0.8
|
2.80
|
West
|
3.38
|
0.8
|
2.73
|
One-Year Adjustable-Rate Mortgages
|
|
First Commitment Rate
|
Fees & Points
|
Margin
|
US
|
3.40
|
0.7
|
2.77
|
Northeast
|
3.44
|
0.5
|
2.81
|
Southeast
|
3.43
|
0.8
|
2.75
|
N. Central
|
3.60
|
0.3
|
2.73
|
Southwest
|
3.39
|
0.8
|
2.80
|
West
|
3.25
|
1.0
|
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
October 7, 2010
30-Year Fixed Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
4.27
|
4.30
|
4.33
|
4.27
|
4.27
|
4.23
|
Fees & Points
|
0.8
|
0.7
|
0.8
|
0.7
|
0.7
|
0.9
|
15-Year Fixed Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.72
|
3.75
|
3.75
|
3.64
|
3.75
|
3.71
|
Fees & Points
|
0.7
|
0.6
|
0.8
|
0.6
|
0.7
|
0.8
|
5/1-Year Adjustable Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.47
|
3.63
|
3.28
|
3.55
|
3.52
|
3.38
|
Fees & Points
|
0.6
|
0.5
|
0.6
|
0.4
|
0.8
|
0.8
|
Margin
|
2.74
|
2.75
|
2.75
|
2.72
|
2.80
|
2.73
|
1-Year Adjustable Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.40
|
3.44
|
3.43
|
3.60
|
3.39
|
3.25
|
Fees & Points
|
0.7
|
0.5
|
0.8
|
0.3
|
0.8
|
1.0
|
Margin
|
2.77
|
2.81
|
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
|
4.87
|
4.33
|
4.35
|
4.53
|
4.32
|
3.75
|
3.52
|
3.48
|
Fees & Points
|
0.7
|
0.7
|
0.5
|
0.5
|
0.8
|
0.7
|
0.6
|
0.7
|
Margin
|
N/A
|
N/A
|
2.75
|
2.77
|
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
|
|