MORTGAGE RATES FLAT ON CONTINUED NEWS OF A WEAK ECONOMY

Long- and Short-Term Rates Are Lower This Week

McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.67 percent with an average 0.4 point for the week ending February 7, 2008, down slightly from last week when it averaged 5.68 percent. Last year at this time, the 30-year FRM averaged 6.28 percent.

The 15-year FRM this week averaged 5.15 percent with an average 0.4 point, down from last week when it averaged 5.17 percent. A year ago at this time, the 15-year FRM averaged 6.02 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.21 percent this week, with an average 0.4 point, down from last week when it averaged 5.32 percent. A year ago, the 5-year ARM averaged 5.99 percent.

One-year Treasury-indexed ARMs averaged 5.03 percent this week with an average 0.5 point, down from last week when it was 5.05 percent. At this time last year, the 1-year ARM averaged 5.49 percent

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

"Long-term mortgage rates were little changed this week, largely in sync with the movements in the Treasury bond yields during the same time," said Frank Nothaft, Freddie Mac vice president and chief economist. "Additionally, economic news released in the past week showed that the economy continues to be weak.

"Non-farm payroll employment fell by 17,000 jobs in December, the first month of job loss since August 2003 while the Institute for Supply Management's non-manufacturing business activity index showed a contraction in this sector last month, the first since March 2003 and the lowest index level since October 2001. The Federal Reserve's Senior Loan Officer Opinion Survey for January reported further tightening of lending standards in residential mortgages over the prior three months, with 53 percent of respondents indicating a tightening of credit in the prime mortgage market, up from 41 percent in the October survey. And 70 percent of those surveyed expect deterioration in credit quality for prime residential mortgages in the coming year."

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

SUMMARY OF SURVEY RESULTS

Freddie Mac defines its regions as follows:

Northeast: NY, NJ, PA, DE, MD, DC, VA, WV, ME, NH, VT, MA, RI, CT
Southeast: NC, SC, TN, KY, GA, AL, FL, PR, VI
North Central: OH, IN, IL, MI, WI, MN, IA, ND, SD
Southwest: TX, LA, NM, OK, AR, MO, KS, CO, NE, WY
West: CA, AZ, NV, OR, WA, UT, ID, MT, HI, AK, GU

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. Freddie Mac may change the methodology used to conduct the PMMS survey at any time and without notice.

DEFINITIONS

Commitment Rate is the interest rate a lender would charge to lend mortgage money to a qualified borrower exclusive of the fees and points required by the lender. This commitment rate applies only to conventional financing on conforming mortgages with loan-to-value rates of 80 percent or less.

ARM Index - is the One-year Treasury

Loan to Value Ratio (LTV) is the ratio of the loan amount of a mortgage loan to the lower of the appraisal value or purchase price of the property securing the loan.

Origination Fees and Discount Points are the total charged by the lender at settlement. One point equals one percent of the loan amount.

Margin is a fixed amount added to the underlying index to establish the fully indexed rate for an ARM.

Weighted Averages for the Primary Mortgage Market Survey have been adjusted as of October 18, 2007. The new weights use the dollar volume of conventional mortgage originations within the 1-unit Freddie Mac loan limit as reported under Home Mortgage Disclosure Act (HMDA) for 2006. The weights are listed in the table below.

PRIMARY MORTGAGE MARKET SURVEY RESULTS
February 07, 2008