Freddie Mac PMMS: Rates lower this week as housing continues to show signs of weaknessMortgagePress.comFreddie Mac, PMMS, housing statistics, Primary Mortgage Market Survey, ARMs
Freddie Mac has released the results of its Primary Mortgage
Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM)
averaged 6.47 percent with an average 0.7 point for the week ending
Aug. 21, 2008, down from last week when it averaged 6.52 percent.
Last year at this time, the 30-year FRM averaged 6.52 percent.
The 15-year FRM this week averaged six percent with an average
0.7 point, down from last week when it averaged 6.07 percent. A
year ago at this time, the 15-year FRM averaged 6.18 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 5.99 percent this week, with an average 0.6 point,
down from last week when it averaged 6.02 percent. A year ago, the
five-year ARM averaged 6.34 percent.
One-year Treasury-indexed ARMs averaged 5.29 percent this week
with an average 0.5 point, up from last week when it averaged 5.18
percent. At this time last year, the one-year ARM averaged 5.60
percent. Average commitment rates should be reported along with
average fees and points to reflect the total cost of obtaining the
mortgage.
"Even with the current historically affordable mortgage rates,
news continues to show signs of weakening in the housing sector,"
said Frank Nothaft, Freddie Mac vice president and chief economist.
"For example, housing starts fell to 0.965 million units
(annualized) in July, the slowest pace since March 1991. As a
result, homebuilder confidence remained at an all-time record low
in August since the series began in January 1985.
"Next week, market watchers will be looking to the release of
house price indices from S&P/Case-Shiller, OFHEO and Freddie
Mac for signs of whether home prices may be slowing their descent
as recent monthly indices have shown, or whether the observed
deceleration was temporary."
For more information, visit www.FreddieMac.com.
