Primary Mortgage Market Survey - Definitions
- Commitment Rate
- 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
- The one-year Treasury
- Loan to Value Ratio (LTV)
- 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
- The total charged by the lender at settlement. One point equals one percent of the loan amount.
- A fixed amount added to the underlying index to establish the fully indexed rate for an ARM.
- Weighted Averages
Weights for the Primary Mortgage Market Survey have been adjusted as of November 11, 2010. 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 2009. The weights are:
Freddie Mac Region PMMS Weights Region Definition Northeast 27.1 NY, NJ, PA, DE, MD, DC, VA, WV, ME, NH, VT, MA, RI, CT Southeast 13.6 NC, SC, TN, KY, GA, AL, FL, MS, PR, VI North Central 17.2 OH, IN, IL, MI, WI, MN, IA, ND, SD Southwest 12.8 TX, LA, NM, OK, AR, MO, KS, CO, NE, WY West 29.3 CA, AZ, NV, OR, WA, UT, ID, MT, HI, AK, GU