Primary Mortgage Market Survey Press Release
ALMOST TWO POINTS LOWER THAN PEAK IN OCTOBER, 30-YEAR FRM TIES RECORD LOW REACHED EARLIER IN APRIL
April 30, 2009
Contact: corprel@freddiemac.com
or (703) 903-3933
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 4.78 percent with an average 0.7 point for the week ending April 30, 2009, down from last week when it averaged 4.80 percent. Last year at this time, the 30-year FRM averaged 6.06 percent. The 30-year FRM now equals the record low that was set the week of April 2, 2009. It has never been recorded lower in Freddie Mac's survey, which goes back to 1970.
The 15-year FRM this week averaged 4.48 percent with an average 0.7 point, unchanged for the third week in a row. A year ago at this time, the 15-year FRM averaged 5.59 percent. This is tied with the last two weeks for the lowest the 15-year FRM has been since Freddie Mac began tracking it in August 1991.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.80 percent this week, with an average 0.6 point, down from last week when it averaged 4.85 percent. A year ago, the 5-year ARM averaged 5.73 percent. This is the lowest the 5-year ARM has been since Freddie Mac began tracking it in January 2005.
One-year Treasury-indexed ARMs averaged 4.77 percent this week with an average 0.7 point, down from last week when it averaged 4.82 percent. At this time last year, the 1-year ARM averaged 5.29 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Rates for fixed-rate mortgages hovered at record lows this week as ARM rates eased further," said Frank Nothaft, Freddie Mac vice president and chief economist. "Mortgage rates for 30-year fixed rate mortgages, the most popular loan among homebuyers and families seeking to refinance, are more than 1.6 percentage points below the recent peak set at the end of October 2008. For a $200,000 loan, this means a monthly savings of almost $212 in mortgage payments or over $2,500 per year. In aggregate, borrowers who refinanced during the first quarter reduced their mortgage payments by about $2.5 billion over the coming year.
"The housing market may be edging towards a bottom. Existing home sales stayed near its four-month average in March while new home sales were stronger than the market consensus. More importantly, the inventory of unsold new homes fell to the lowest number since January 2002. And, the S&P/Case-Shiller® 20-city composite index did not show a record year-over-year decline in February for the first time since December 2006. Finally, housing affordability hit record highs in the first quarter of this year, according to figures from the National Association of Realtors, which date back to January 1971."
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 | 4.78 | 0.7 | 4.48 | 0.7 |
| Northeast | 4.82 | 0.7 | 4.51 | 0.7 |
| Southeast | 4.77 | 0.6 | 4.48 | 0.6 |
| N. Central | 4.83 | 0.7 | 4.51 | 0.7 |
| Southwest | 4.70 | 0.6 | 4.46 | 0.6 |
| West | 4.76 | 0.8 | 4.44 | 0.8 |
| Five/One-Year Adjustable-Rate Mortgages | |||
|---|---|---|---|
| First Commitment Rate | Fees & Points | Margin | |
| US | 4.80 | 0.6 | 2.74 |
| Northeast | 4.68 | 0.6 | 2.73 |
| Southeast | 4.62 | 0.7 | 2.75 |
| N. Central | 5.06 | 0.7 | 2.75 |
| Southwest | 4.72 | 0.6 | 2.76 |
| West | 4.92 | 0.6 | 2.73 |
| One-Year Adjustable-Rate Mortgages | |||
|---|---|---|---|
| First Commitment Rate | Fees & Points | Margin | |
| US | 4.77 | 0.7 | 2.76 |
| Northeast | 4.34 | 0.6 | 2.75 |
| Southeast | 5.03 | 0.6 | 2.75 |
| N. Central | 5.09 | 0.8 | 2.75 |
| Southwest | 4.83 | 1.0 | 2.79 |
| West | 4.76 | 0.6 | 2.75 |
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, MS, 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 16, 2008. 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 2007. The weights are listed in the table below.
| Freddie Mac Region | PMMS Weights |
| Northeast | 24.2 |
| Southeast | 19.8 |
| North Central | 15.1 |
| Southwest | 12.7 |
| West | 28.2 |
Primary Mortgage Market Survey Results
April 30, 2009
| 30-Year Fixed Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.78 | 4.82 | 4.77 | 4.83 | 4.70 | 4.76 |
| Fees & Points | 0.7 | 0.7 | 0.6 | 0.7 | 0.6 | 0.8 |
| 15-Year Fixed Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.48 | 4.51 | 4.48 | 4.51 | 4.46 | 4.44 |
| Fees & Points | 0.7 | 0.7 | 0.6 | 0.7 | 0.6 | 0.8 |
| 5/1-Year Adjustable Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.80 | 4.68 | 4.62 | 5.06 | 4.72 | 4.92 |
| Fees & Points | 0.6 | 0.6 | 0.7 | 0.7 | 0.6 | 0.6 |
| Margin | 2.74 | 2.73 | 2.75 | 2.75 | 2.76 | 2.73 |
| 1-Year Adjustable Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.77 | 4.34 | 5.03 | 5.09 | 4.83 | 4.76 |
| Fees & Points | 0.7 | 0.6 | 0.6 | 0.8 | 1.0 | 0.6 |
| Margin | 2.76 | 2.75 | 2.75 | 2.75 | 2.79 | 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 | 6.06 | 5.59 | 5.73 | 5.29 | 4.80 | 4.48 | 4.85 | 4.82 |
| Fees & Points | 0.5 | 0.5 | 0.5 | 0.6 | 0.7 | 0.7 | 0.6 | 0.4 |
| Margin | N/A | N/A | 2.76 | 2.75 | N/A | N/A | 2.75 | 2.76 |