Primary Mortgage Market Survey Press Release
Mortgage Rates Nearly Flat in Freddie Mac Weekly Survey
October 29, 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 5.03 percent with an average 0.7 point for the week ending October 29, 2009, up from last week when it averaged 5.00 percent. Last year at this time, the 30-year FRM averaged 6.46 percent.
The 15-year FRM this week averaged 4.46 percent with an average 0.6 point, up from last week when it averaged 4.43 percent. A year ago at this time, the 15-year FRM averaged 6.19 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.42 percent this week, with an average 0.6 point, up from last week when it averaged 4.40 percent. A year ago, the 5-year ARM averaged 6.36 percent.
The one-year Treasury-indexed ARM averaged 4.57 percent this week with an average 0.6 point, up from last week when it averaged 4.54 percent. At this time last year, the 1-year ARM averaged 5.38 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 30-year fixed mortgages have averaged just below 5 percent this year, which is the lowest 10-month average since the survey began in 1971," said Frank Nothaft, Freddie Mac vice president and chief economist. "As a result, refinance activity has accounted for almost seven out of 10 mortgage applications on average this year," according to Freddie Mac's survey.
"Economic data releases this week offered mixed signals as to the current state of the housing market. For example, total existing home sales jumped 9.4 percent to an annualized rate of 5.57 million homes in September, the strongest pace since July 2007, according to the National Association of Realtors®. However, new home sales unexpectedly fell 3.6 percent to 402,000 houses, the weakest since June of this year, based on figures from the Department of Commerce. Nonetheless, stronger housing demand has lowered the inventory of unsold existing homes in September to the lowest since January of this year and for new homes the lowest since November 1982, which should help stabilize falling house prices."
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 | 5.03 | 0.7 | 4.46 | 0.6 |
| Northeast | 5.02 | 0.8 | 4.44 | 0.7 |
| Southeast | 5.01 | 0.7 | 4.44 | 0.6 |
| N. Central | 5.11 | 0.5 | 4.52 | 0.5 |
| Southwest | 5.06 | 0.6 | 4.50 | 0.5 |
| West | 5.01 | 0.8 | 4.44 | 0.7 |
| Five/One-Year Adjustable-Rate Mortgages | |||
|---|---|---|---|
| First Commitment Rate | Fees & Points | Margin | |
| US | 4.42 | 0.6 | 2.73 |
| Northeast | 4.53 | 0.5 | 2.70 |
| Southeast | 4.15 | 0.7 | 2.75 |
| N. Central | 4.73 | 0.7 | 2.73 |
| Southwest | 4.51 | 0.5 | 2.78 |
| West | 4.30 | 0.7 | 2.73 |
| One-Year Adjustable-Rate Mortgages | |||
|---|---|---|---|
| First Commitment Rate | Fees & Points | Margin | |
| US | 4.57 | 0.6 | 2.74 |
| Northeast | 4.41 | 0.4 | 2.68 |
| Southeast | 4.77 | 0.5 | 2.75 |
| N. Central | 4.84 | 0.8 | 2.75 |
| Southwest | 4.65 | 0.5 | 2.83 |
| West | 4.39 | 0.7 | 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
October 29, 2009
| 30-Year Fixed Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 5.03 | 5.02 | 5.01 | 5.11 | 5.06 | 5.01 |
| Fees & Points | 0.7 | 0.8 | 0.7 | 0.5 | 0.6 | 0.8 |
| 15-Year Fixed Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.46 | 4.44 | 4.44 | 4.52 | 4.50 | 4.44 |
| Fees & Points | 0.6 | 0.7 | 0.6 | 0.5 | 0.5 | 0.7 |
| 5/1-Year Adjustable Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.42 | 4.53 | 4.15 | 4.73 | 4.51 | 4.30 |
| Fees & Points | 0.6 | 0.5 | 0.7 | 0.7 | 0.5 | 0.7 |
| Margin | 2.73 | 2.70 | 2.75 | 2.73 | 2.78 | 2.73 |
| 1-Year Adjustable Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.57 | 4.41 | 4.77 | 4.84 | 4.65 | 4.39 |
| Fees & Points | 0.6 | 0.4 | 0.5 | 0.8 | 0.5 | 0.7 |
| Margin | 2.74 | 2.68 | 2.75 | 2.75 | 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 | 6.46 | 6.19 | 6.36 | 5.38 | 5.00 | 4.43 | 4.40 | 4.54 |
| Fees & Points | 0.7 | 0.7 | 0.7 | 0.6 | 0.7 | 0.6 | 0.6 | 0.6 |
| Margin | N/A | N/A | 2.75 | 2.76 | N/A | N/A | 2.74 | 2.77 |