Freddie Mac PMMS: Rates drift lower on reports of economic weakness; other reports point to progress in housing marketMortgagePress.comFreddie Mac, PMMS, adjustable-rate mortgages
Freddie Mac has released the results of its Primary Mortgage
Market SurveyR (PMMSR) in which the 30-year fixed-rate mortgage
(FRM) averaged 6.40 percent with an average 0.6 point for the week
ending August 21, 2008, down from last week when it averaged 6.47
percent. Last year at this time, the 30-year FRM averaged 6.67
percent. The 15-year FRM this week averaged 5.93 percent with an
average 0.6 point, down from last week when it averaged 6.00
percent. A year ago at this time, the 15-year FRM averaged 6.12
percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 6.03 percent this week, with an average 0.6 point,
down from last week when it averaged 5.99 percent. A year ago, the
5-year ARM averaged 6.35 percent. One-year Treasury-indexed ARMs
averaged 5.33 percent this week with an average 0.7 point, up from
last week when it averaged 5.29 percent. At this time last year,
the 1-year ARM averaged 5.84 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 continue to
drift down as reports of economic weakness persist. July's leading
economic indicators fell by more than the market consensus and
manufacturing slowed in both the Philadelphia and Richmond regions.
ARM rates, on the other hand, rose slightly after the Federal
Reserve's Open Market Committee hinted it might increase the
overnight bank lending rate in its August 5th minutes.
However, the housing front is providing some encouraging signs.
The pace of home price declines slowed down for the fourth straight
month in June and the number of metro areas exhibiting monthly
gains rose from seven to nine, according to the
S&P/Case-ShillerR 20-city composite index. There are also signs
more buyers may be getting ready to return to the market. The
Conference Board says the share of households planning to buy a
home within six months is now at its highest level since March. At
the same time, the supply for unsold new homes is down to 10.1
months, the lowest since February, as single-family existing homes
(excluding condos and co-ops) start to sell more quickly. Although,
when condos and co-ops are included, the resale inventory did edge
up."
For more information visit www.freddiemac.com
