US 30-Year Fixed-Rate Mortgage Drops Amid Japan Crisis
Location: McLean
Author:
Eileen Fitzpatrick
Date: Friday, March 18, 2011
Freddie Mac (OTC: FMCC) yesterday released
the results of its Primary
Mortgage Market Survey® (PMMS®), which shows the 30-year fixed-rate
dropping to 4.76 percent while the 15-year fixed-rate hit its lowest
rate at 3.97 percent since December 2010.
News Facts
-
30-year fixed-rate mortgage (FRM) averaged 4.76 percent with an
average 0.7 point for the week ending March 17, 2011, downfrom last
week when it averaged 4.88 percent. Last year at this time, the
30-year FRM averaged 4.96 percent.
-
15-year FRM this week averaged 3.97 percent with an average 0.7
point, downfrom last week when it averaged 4.15 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 3.57 percent this week, with an average 0.6 point, down
from last week when it averaged 3.73 percent. A year ago, the 5-year
ARM averaged 4.09 percent.
-
1-year Treasury-indexed ARM averaged 3.17 percent this week with
an average 0.6 point, downfrom last week when it averaged 3.21
percent. At this time last year, the 1-year ARM averaged 4.12
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.
- "With the crisis in Japan, investors rushed to buy the security
of
U.S. Treasury bonds, which lowered its yields and other interest
rates as well. This allowed fixed mortgage rates to drift lower this
week.
- "In aggregate, families have been strengthening their balance
sheets. In the fourth quarter of 2010, household net worth rose by
$2.1 trillion, boosted by gains in the stock market. This helped
lower their
financial obligation ratio (debt payments relative to disposable
income) to the lowest level since the first quarter of 1995."
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
|
4.76
|
0.7
|
3.97
|
0.7
|
Northeast
|
4.76
|
0.7
|
3.99
|
0.7
|
Southeast
|
4.74
|
0.9
|
3.98
|
0.9
|
N. Central
|
4.77
|
0.6
|
3.95
|
0.6
|
Southwest
|
4.82
|
0.5
|
4.10
|
0.6
|
West
|
4.72
|
0.8
|
3.92
|
0.8
|
Five/One-Year Adjustable-Rate Mortgages
|
|
First Commitment Rate
|
Fees & Points
|
Margin
|
US
|
3.57
|
0.6
|
2.74
|
Northeast
|
3.78
|
0.6
|
2.74
|
Southeast
|
3.42
|
0.8
|
2.75
|
N. Central
|
3.58
|
0.4
|
2.71
|
Southwest
|
3.66
|
0.6
|
2.77
|
West
|
3.39
|
0.8
|
2.73
|
One-Year Adjustable-Rate Mortgages
|
|
First Commitment Rate
|
Fees & Points
|
Margin
|
US
|
3.17
|
0.6
|
2.76
|
Northeast
|
3.28
|
0.6
|
2.80
|
Southeast
|
3.02
|
0.7
|
2.75
|
N. Central
|
3.35
|
0.3
|
2.72
|
Southwest
|
3.23
|
0.8
|
2.77
|
West
|
3.02
|
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
March 17, 2011
30-Year Fixed Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
4.76
|
4.76
|
4.74
|
4.77
|
4.82
|
4.72
|
Fees & Points
|
0.7
|
0.7
|
0.9
|
0.6
|
0.5
|
0.8
|
15-Year Fixed Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.97
|
3.99
|
3.98
|
3.95
|
4.10
|
3.92
|
Fees & Points
|
0.7
|
0.7
|
0.9
|
0.6
|
0.6
|
0.8
|
5/1-Year Adjustable Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.57
|
3.78
|
3.42
|
3.58
|
3.66
|
3.39
|
Fees & Points
|
0.6
|
0.6
|
0.8
|
0.4
|
0.6
|
0.8
|
Margin
|
2.74
|
2.74
|
2.75
|
2.71
|
2.77
|
2.73
|
1-Year Adjustable Rate Mortgages
|
|
US
|
NE
|
SE
|
NC
|
SW
|
W
|
Average
|
3.17
|
3.28
|
3.02
|
3.35
|
3.23
|
3.02
|
Fees & Points
|
0.6
|
0.6
|
0.7
|
0.3
|
0.8
|
0.7
|
Margin
|
2.76
|
2.80
|
2.75
|
2.72
|
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
|
4.96
|
4.33
|
4.09
|
4.12
|
4.88
|
4.15
|
3.73
|
3.21
|
Fees & Points
|
0.7
|
0.6
|
0.6
|
0.6
|
0.7
|
0.7
|
0.6
|
0.5
|
Margin
|
N/A
|
N/A
|
2.74
|
2.75
|
N/A
|
N/A
|
2.74
|
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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