US 30-Year Fixed-Rate Mortgage Drops to 5 Percent
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, February 18, 2011
Freddie Mac (OTC: FMCC) yesterday released
the results of its Primary
Mortgage Market Survey® (PMMS), which shows a drop in long-term
fixed rates this week.
News Facts
-
30-year fixed-rate mortgage (FRM) averaged 5.0 percent with an
average 0.7 point for the week ending February 17, 2011, down from
last week when it averaged 5.05 percent. Last year at this time, the
30-year FRM averaged 4.93 percent.
-
15-year FRM this week averaged 4.27 percent with an average 0.7
point, down from last week when it averaged 4.29 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 3.87 percent this week, with an average 0.6 point, down
from last week when it averaged 3.92 percent. A year ago, the 5-year
ARM averaged 4.12 percent.
-
1-year Treasury-indexed ARM averaged 3.39 percent this week with
an average 0.6 point, up from last week when it averaged 3.35
percent. At this time last year, the 1-year ARM averaged 4.23
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.
- "Fixed mortgage rates eased slightly this week and continue to
be very affordable. Prior to 2009, interest rates for
30-year
fixed-rate mortgages had never been at 5 percent since our
survey began in April 1971. In both 1981 and 1982, the rates were
over three times as high as they are today.
- "The housing market is struggling to regain traction despite
still historically low rates.
New construction on one-family homes dipped slightly in January
to an annualized pace of 413,000 units, which was the fewest number
since May 2009. In addition, homebuilder confidence didn’t improve
for the third consecutive month in February and remains near record
lows, according the NAHB/Wells Fargo
Housing Market Index."
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
|
5.00
|
0.7
|
4.27
|
0.7
|
Northeast
|
5.04
|
0.7
|
4.30
|
0.7
|
Southeast
|
4.95
|
0.9
|
4.23
|
0.9
|
N. Central
|
5.04
|
0.6
|
4.30
|
0.5
|
Southwest
|
5.04
|
0.6
|
4.32
|
0.6
|
West
|
4.96
|
0.8
|
4.21
|
0.8
|
Five/One-Year Adjustable-Rate Mortgages
|
|
First Commitment Rate
|
Fees & Points
|
Margin
|
US
|
3.87
|
0.6
|
2.75
|
Northeast
|
3.96
|
0.7
|
2.78
|
Southeast
|
3.77
|
0.8
|
2.75
|
N. Central
|
3.99
|
0.4
|
2.72
|
Southwest
|
3.84
|
0.6
|
2.77
|
West
|
3.76
|
0.7
|
2.74
|
One-Year Adjustable-Rate Mortgages
|
|
First Commitment Rate
|
Fees & Points
|
Margin
|
US
|
3.39
|
0.6
|
2.76
|
Northeast
|
3.53
|
0.6
|
2.79
|
Southeast
|
3.19
|
0.7
|
2.75
|
N. Central
|
3.71
|
0.3
|
2.73
|
Southwest
|
3.38
|
0.8
|
2.77
|
West
|
3.18
|
0.7
|
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
February 17, 2011
30-Year Fixed Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
5.00
|
5.04
|
4.95
|
5.04
|
5.04
|
4.96
|
Fees & Points
|
0.7
|
0.7
|
0.9
|
0.6
|
0.6
|
0.8
|
15-Year Fixed Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
4.27
|
4.30
|
4.23
|
4.30
|
4.32
|
4.21
|
Fees & Points
|
0.7
|
0.7
|
0.9
|
0.5
|
0.6
|
0.8
|
5/1-Year Adjustable Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.87
|
3.96
|
3.77
|
3.99
|
3.84
|
3.76
|
Fees & Points
|
0.6
|
0.7
|
0.8
|
0.4
|
0.6
|
0.7
|
Margin
|
2.75
|
2.78
|
2.75
|
2.72
|
2.77
|
2.74
|
1-Year Adjustable Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.39
|
3.53
|
3.19
|
3.71
|
3.38
|
3.18
|
Fees & Points
|
0.6
|
0.6
|
0.7
|
0.3
|
0.8
|
0.7
|
Margin
|
2.76
|
2.79
|
2.75
|
2.73
|
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
|
4.93
|
4.33
|
4.12
|
4.23
|
5.05
|
4.29
|
3.92
|
3.35
|
Fees & Points
|
0.7
|
0.6
|
0.5
|
0.6
|
0.7
|
0.7
|
0.6
|
0.6
|
Margin
|
N/A
|
N/A
|
2.74
|
2.75
|
N/A
|
N/A
|
2.75
|
2.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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|