Freddie Mac Weekly Survey: Fixed-rate mortgages jump to highest level in nearly eight monthsMortgagePress.comFreddie Mac Weekly Survey, Primary Mortgage Market Survey, ARMs
Freddie Mac released the results of its Primary Mortgage Market
Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM)
averaged 6.32 percent with an average 0.7 point for the week ending
June 12, 2008, up from last week when it averaged 6.09 percent.
Last year at this time, the 30-year FRM averaged 6.74 percent. The
last time the 30-year FRM was higher was the week ending October
25, 2007, when it averaged 6.33 percent.
The 15-year FRM this week averaged 5.93 percent with an average
0.6 point, up from last week when it averaged 5.65 percent. A year
ago at this time, the 15-year FRM averaged 6.43 percent. The last
time the 15-year FRM was higher was the week ending October 25,
2007, when it averaged 5.99 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 5.70 percent this week, with an average 0.7 point,
up from last week when it averaged 5.51 percent. A year ago, the
5-year ARM averaged 6.37 percent.
One-year Treasury-indexed ARMs averaged 5.09 percent this week
with an average 0.6 point, up from last week when it was 5.06
percent. At this time last year, the one-year ARM averaged 5.75
percent. The average commitment rates should be reported along with
average fees and points to reflect the total cost of obtaining the
mortgage.
"Mortgage rates jumped this week after a number of Federal
Reserve (Fed) officials, most notably Chairman Bernanke and Vice
Chair Kohn, expressed concern over a threat of inflation," said
Frank Nothaft, Freddie Mac vice president and chief economist.
"This led some market participants to believe that the Fed will
raise rates more aggressively over the year than previously
thought.
"Meanwhile, news reports on the housing market were mixed.
Serious delinquencies (loans over due 90-days or more or in
foreclosure) for both prime and subprime conventional mortgages
nearly doubled between first quarter of 2007 and 2008, according to
the Mortgage Bankers Association. However, the household debt
service and homeowner financial obligation ratios improved over the
same period. Moreover, pending home sales for April unexpectedly
rose by 6.3 percent and mortgage applications for both home
purchases and refinancing were also up last week."
For more information, visit www.freddiemac.com.
