Primary Mortgage Market Survey Press Release
MORTGAGE RATES CLIMB, BUT STILL REMAIN VERY AFFORDABLE
February 5, 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 5.25 percent with an average 0.8 point for the week ending February 5, 2009, up from last week when it averaged 5.10 percent. Last year at this time, the 30-year FRM averaged 5.67 percent.
The 15-year FRM this week averaged 4.92 percent with an average 0.8 point, up from last week when it averaged 4.80 percent. A year ago at this time, the 15-year FRM averaged 5.15 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.26 percent this week, with an average 0.6 point, down slightly from last week when it averaged 5.27 percent. A year ago, the 5-year ARM averaged 5.21 percent.
One-year Treasury-indexed ARMs averaged 4.92 percent this week with an average 0.5 point, up from last week when it averaged 4.90 percent. At this time last year, the 1-year ARM averaged 5.03 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 rose this week amid economic reports that were somewhat better than consensus forecasts had anticipated," said Frank Nothaft, Freddie Mac vice president and chief economist. "The economy slowed by 3.8 percent in the fourth quarter of 2008, less than the market consensus, with inflationary pressures held at bay. Meanwhile, personal incomes fell by only half as much as some market forecasters predicted.
Low mortgage rates and falling house prices have made housing the most affordable in 19 years. The National Association of Realtor's monthly affordability index rose to an all-time record high in December 2008 since records began in January 1971. As a result, pending existing home sales rose 6.3 percent in December 2008 and were up 2.1 percent from the previous December."
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 | 5.25 | 0.8 | 4.92 | 0.8 |
| Northeast | 5.25 | 0.7 | 4.87 | 0.8 |
| Southeast | 5.29 | 0.8 | 4.97 | 0.8 |
| N. Central | 5.20 | 0.6 | 4.88 | 0.6 |
| Southwest | 5.36 | 0.6 | 5.02 | 0.6 |
| West | 5.19 | 0.9 | 4.90 | 0.9 |
| Five/One-Year Adjustable-Rate Mortgages | |||
|---|---|---|---|
| First Commitment Rate | Fees & Points | Margin | |
| US | 5.26 | 0.6 | 2.74 |
| Northeast | 4.98 | 0.5 | 2.72 |
| Southeast | 5.30 | 0.8 | 2.75 |
| N. Central | 5.25 | 0.5 | 2.73 |
| Southwest | 5.49 | 0.5 | 2.78 |
| West | 5.37 | 0.7 | 2.72 |
| One-Year Adjustable-Rate Mortgages | |||
|---|---|---|---|
| First Commitment Rate | Fees & Points | Margin | |
| US | 4.92 | 0.5 | 2.75 |
| Northeast | 4.43 | 0.7 | 2.74 |
| Southeast | 5.20 | 0.6 | 2.75 |
| N. Central | 5.08 | 0.5 | 2.72 |
| Southwest | 5.52 | 0.4 | 2.81 |
| West | 4.78 | 0.5 | 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
February 5, 2009
| 30-Year Fixed Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 5.25 | 5.25 | 5.29 | 5.20 | 5.36 | 5.19 |
| Fees & Points | 0.8 | 0.7 | 0.8 | 0.6 | 0.6 | 0.9 |
| 15-Year Fixed Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.92 | 4.87 | 4.97 | 4.88 | 5.02 | 4.90 |
| Fees & Points | 0.8 | 0.8 | 0.8 | 0.6 | 0.6 | 0.9 |
| 5/1-Year Adjustable Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 5.26 | 4.98 | 5.30 | 5.25 | 5.49 | 5.37 |
| Fees & Points | 0.6 | 0.5 | 0.8 | 0.5 | 0.5 | 0.7 |
| Margin | 2.74 | 2.72 | 2.75 | 2.73 | 2.78 | 2.72 |
| 1-Year Adjustable Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.92 | 4.43 | 5.20 | 5.08 | 5.52 | 4.78 |
| Fees & Points | 0.5 | 0.7 | 0.6 | 0.5 | 0.4 | 0.5 |
| Margin | 2.75 | 2.74 | 2.75 | 2.72 | 2.81 | 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 | 5.68 | 5.17 | 5.32 | 5.05 | 5.10 | 4.80 | 5.27 | 4.90 |
| Fees & Points | 0.4 | 0.4 | 0.4 | 0.7 | 0.7 | 0.7 | 0.6 | 0.6 |
| Margin | N/A | N/A | 2.76 | 2.76 | N/A | N/A | 2.74 | 2.76 |