MORTGAGE RATES NEAR JANUARY LEVELS IN FREDDIE MAC'S WEEKLY SURVEY

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 6.04 percent with an average 0.6 point for the week ending February 21, 2008, up from last week when it averaged 5.72 percent. Last year at this time, the 30-year FRM averaged 6.22 percent.

The 15-year FRM this week averaged 5.64 percent with an average 0.5 point, up from last week when it averaged 5.25 percent. A year ago at this time, the 15-year FRM averaged 5.97 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.37 percent this week, with an average 0.5 point, up from last week when it averaged 5.19 percent. A year ago, the 5-year ARM averaged 5.96 percent.

One-year Treasury-indexed ARMs averaged 4.98 percent this week with an average 0.6 point, down from last week when it was 5.00 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.)

"After trending up in the past two weeks, long-term fixed mortgage rates are back up to nearly where they were at the beginning of the year. In contrast, average rates on adjustable-rate mortgages are about 0.5 percentage points below levels of the first week of this year," said Frank Nothaft, Freddie Mac vice president and chief economist. "As the spread between long-term fixed-rates and adjustable-rates widens, it's possible we could see a slight increase in the popularity of adjustable-rate mortgages.

"In Wednesday's release of the minutes of the Federal Open Market Committee's most recent meeting, the Federal Reserve reduced its forecast of economic growth for this year to a rate of 1.3 to 2.0 percent, down from the 1.8 to 2.5 percent forecast from last October. The sluggish housing market and tight credit conditions were among the factors contributing to lowered projections. Indeed, although January's housing starts showed an increase from December's level, the gains were from multifamily properties. Single-family construction in January fell to the lowest level since January 1991 and especially weak were single-family housing starts in the West, which experienced the slowest pace of construction since the beginning of the series in 1959."

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 21, 2008