Primary Mortgage Market Survey Press Release

NOT MUCH CHANGE IN FIXED RATE MORTGAGE RATES

For Immediate Release

May 14, 2009
Contact: corprel@freddiemac.com
or (703) 903-3933

But ARM Rates Are Lower

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 4.86 percent with an average 0.6 point for the week ending May 14, 2009, up from last week when it averaged 4.84 percent. Last year at this time, the 30-year FRM averaged 6.01 percent.

The 15-year FRM this week averaged 4.52 percent with an average 0.6 point, up from last week when it averaged 4.51 percent. A year ago at this time, the 15-year FRM averaged 5.60 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.82 percent this week, with an average 0.6 point, down from last week when it averaged 4.90 percent. A year ago, the 5-year ARM averaged 5.57 percent.

One-year Treasury-indexed ARMs averaged 4.71 percent this week with an average 0.6 point, down from last week when it averaged 4.78 percent. At this time last year, the 1-year ARM averaged 5.18 percent.

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

“Interest rates for fixed-rate mortgages were little changed this week following the release of April’s employment figures,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The economy lost 539,000 jobs, less than the monthly job loss of the past five months, and the unemployment rate rose to 8.9 percent. ARM rates, however, fell slightly over the period.

“Relatively low house prices and interest rates are clearly helping first-time homebuyers. Housing affordability for the median first-time buyer reached an all-time record high in the first quarter since the NAR index began in 1981. Consequently, first-time homebuyers accounted for half of existing home sales in the first three months of this year, the NAR reported.”

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	4.86	0.6	4.52	0.6
Northeast	4.92	0.6	4.57	0.6
Southeast	4.79	0.7	4.47	0.7
N. Central	4.92	0.6	4.54	0.6
Southwest	4.83	0.5	4.53	0.5
West	4.83	0.8	4.48	0.7

Five/One-Year Adjustable-Rate Mortgages
	First Commitment Rate	Fees & Points	Margin
US	4.82	0.6	2.74
Northeast	4.62	0.5	2.73
Southeast	4.56	0.8	2.75
N. Central	5.07	0.6	2.74
Southwest	4.80	0.4	2.78
West	5.03	0.6	2.73

One-Year Adjustable-Rate Mortgages
	First Commitment Rate	Fees & Points	Margin
US	4.71	0.6	2.76
Northeast	4.25	0.6	2.75
Southeast	5.03	0.6	2.75
N. Central	4.81	0.6	2.72
Southwest	4.88	0.8	2.83
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
May 14, 2009

30-Year Fixed Rate Mortgages
	US	NE	SE	NC	SW	W
Average	4.86	4.92	4.79	4.92	4.83	4.83
Fees & Points	0.6	0.6	0.7	0.6	0.5	0.8

15-Year Fixed Rate Mortgages
	US	NE	SE	NC	SW	W
Average	4.52	4.57	4.47	4.54	4.53	4.48
Fees & Points	0.6	0.6	0.7	0.6	0.5	0.7

5/1-Year Adjustable Rate Mortgages
	US	NE	SE	NC	SW	W
Average	4.82	4.62	4.56	5.07	4.80	5.03
Fees & Points	0.6	0.5	0.8	0.6	0.4	0.6
Margin	2.74	2.73	2.75	2.74	2.78	2.73

1-Year Adjustable Rate Mortgages
	US	NE	SE	NC	SW	W
Average	4.71	4.25	5.03	4.81	4.88	4.76
Fees & Points	0.6	0.6	0.6	0.6	0.8	0.6
Margin	2.76	2.75	2.75	2.72	2.83	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	6.01	5.60	5.57	5.18	4.84	4.51	4.90	4.78
Fees & Points	0.6	0.5	0.6	0.7	0.7	0.7	0.6	0.6
Margin	N/A	N/A	2.75	2.75	N/A	N/A	2.74	2.76

Primary Mortgage Market Survey Press Release

NOT MUCH CHANGE IN FIXED RATE MORTGAGE RATES

Summary of Survey Results

Primary Mortgage Market Survey ResultsMay 14, 2009

Primary Mortgage Market Survey Results
May 14, 2009