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Primary Mortgage Market Survey Press Release

30-Year Fixed Rate Mortgage Drops Slightly to Create Another New Low

15-Year Mortgage Rises Very Moderately

McLean, VA – Freddie Mac (OTC:FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.57 percent with an average 0.7 point for the week ending July 8, 2010, down from last week when it averaged 4.58 percent. Last year at this time, the 30-year FRM averaged 5.20 percent. This rate is yet another all-time low in Freddie Mac’s 39-year survey.

The 15-year FRM this week averaged 4.07 percent with an average 0.7 point, up from last week when it averaged 4.04 percent. A year ago at this time, the 15-year FRM averaged 4.69 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.75 percent this week, with an average 0.7 point, down from last week when it averaged 3.79 percent. A year ago, the 5-year ARM averaged 4.82 percent. This rate is also an all-time low since Freddie Mac began tracking it in 2005.

The 1-year Treasury-indexed ARM averaged 3.75 percent this week with an average 0.7 point, down from last week when it averaged 3.80 percent. At this time last year, the 1-year ARM averaged 4.82 percent.

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

“With mortgage rates falling to historic lows, refinance activity has been strong over the past three months,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The Bureau of Economic Analysis reported that the effective mortgage rate of all loans outstanding was just below six percent in the first quarter of 2010, the lowest since the series began in 1977. Since the start of the second quarter, two out of three mortgage applications on average were for refinancing, according the Mortgage Bankers Association.

“Household balance sheets also improved in other ways over the first three months of the year. The Federal Reserve (Fed) reported household net worth rose by almost $1.1 trillion in the first quarter of 2010. The share of credit card loans that were 30-days or more past due fell to the lowest since first quarter of 2002, according to the American Bankers Association. Finally, the aggregate household debt burdens were at a level not seen since the third quarter of 2000, based on the Fed’s debt service ratio.”

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	4.57	0.7	4.07	0.7
Northeast	4.63	0.7	4.10	0.6
Southeast	4.60	0.7	4.06	0.8
N. Central	4.58	0.5	4.11	0.6
Southwest	4.54	0.6	4.05	0.6
West	4.51	0.9	4.04	0.8

Five/One-Year Adjustable-Rate Mortgages
	First Commitment Rate	Fees & Points	Margin
US	3.75	0.7	2.74
Northeast	4.00	0.6	2.76
Southeast	3.58	0.7	2.75
N. Central	3.63	0.6	2.72
Southwest	3.80	0.8	2.77
West	3.66	0.8	2.73

One-Year Adjustable-Rate Mortgages
	First Commitment Rate	Fees & Points	Margin
US	3.75	0.7	2.77
Northeast	3.77	0.5	2.80
Southeast	3.58	0.9	2.75
N. Central	3.90	0.6	2.73
Southwest	3.92	0.8	2.77
West	3.66	0.7	2.77

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. 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.

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 December 17, 2009. The new weights use the dollar volume of conventional first-lien mortgage originations within the 1-unit Freddie Mac loan limit as reported under the Home Mortgage Disclosure Act (HMDA) for 2008. The weights are listed in the table below.

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Primary Mortgage Market Survey Results
July 8, 2010

30-Year Fixed Rate Mortgages
	US	NE	SE	NC	SW	W
Average	4.57	4.63	4.60	4.58	4.54	4.51
Fees & Points	0.7	0.7	0.7	0.5	0.6	0.9

15-Year Fixed Rate Mortgages
	US	NE	SE	NC	SW	W
Average	4.07	4.10	4.06	4.11	4.05	4.04
Fees & Points	0.7	0.6	0.8	0.6	0.6	0.8

5/1-Year Adjustable Rate Mortgages
	US	NE	SE	NC	SW	W
Average	3.75	4.00	3.58	3.63	3.80	3.66
Fees & Points	0.7	0.6	0.7	0.6	0.8	0.8
Margin	2.74	2.76	2.75	2.72	2.77	2.73

1-Year Adjustable Rate Mortgages
	US	NE	SE	NC	SW	W
Average	3.75	3.77	3.58	3.90	3.92	3.66
Fees & Points	0.7	0.5	0.9	0.6	0.8	0.7
Margin	2.77	2.80	2.75	2.73	2.77	2.77

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	5.20	4.69	4.82	4.82	4.58	4.04	3.79	3.80
Fees & Points	0.7	0.7	0.6	0.6	0.7	0.7	0.7	0.7
Margin	N/A	N/A	2.74	2.76	N/A	N/A	2.75	2.75