Mortgage rates plunge in Freddie Mac weekly surveyMortgagePress.comFreddie Mac, PMMS, fixed-rate mortgage, adjustable-rate mortgage
Freddie Mac recently released the results of its Primary
Mortgage Market Survey (PMMS) in which the 30-year fixed-rate
mortgage (FRM) averaged 5.93 percent with an average 0.7 point for
the week ending September 11, 2008, down from last week when it
averaged 6.35 percent. Last year at this time, the 30-year FRM
averaged 6.31 percent. The 15-year FRM this week averaged 5.54
percent with an average 0.7 point, down from last week when it
averaged 5.90 percent. A year ago at this time, the 15-year FRM
averaged 5.97 percent.
Five-year treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 5.87 percent this week, with an average 0.7 point,
down from last week when it averaged 5.97 percent. A year ago, the
5-year ARM averaged 6.17 percent. One-year Treasury-indexed ARMs
averaged 5.21 percent this week with an average 0.6 point, up from
last week when it averaged 5.15 percent. At this time last year,
the 1-year ARM averaged 5.66 percent.
"Interest rates for 30-year fixed-rate mortgages are down almost
0.6 percentage points over the past 4 weeks, which will help to
spur home purchases and loan refinancing in coming weeks," said
Frank Nothaft, Freddie Mac vice president and chief economist.
"This means that the monthly principal and interest payment on a
new $200,000 loan is over $76 lower than a month ago."
"Lower rates have occurred at an opportune time, as the July
pending sales data from the National Association of Realtors were
off 3.2 percent from June. The Mortgage Bankers Association
reported that refinance applications are up 18 percent over the
past 3 weeks through September 5th, indicating that refinance
activity has already begun to pick up."
For more information, visit www.freddiemac.com.