Thirty year fixed rate mortgage rates fall for fifth straight weekMortgagePress.comPMMS, 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 5.78 percent with an average 0.6 point for
the week ending September 18, 2008, down from last week when it
averaged 5.93 percent. Last year at this time, the 30-year FRM
averaged 6.34 percent. The last time the 30-year FRM was lower was
the week ending February 14, 2008, when it averaged 5.72
percent.
The 15-year FRM this week averaged 5.35 percent with an average
0.6 point, down from last week when it averaged 5.54 percent. A
year ago at this time, the 15-year FRM averaged 5.98 percent. The
last time the 15-year FRM was lower was the week ending March 27,
2008, when it averaged 5.34 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 5.67 percent this week, with an average 0.7 point,
down from last week when it averaged 5.87 percent. A year ago, the
5-year ARM averaged 6.21 percent.
One-year Treasury-indexed ARMs averaged 5.03 percent this week
with an average 0.5 point, down from last week when it averaged
5.21 percent. At this time last year, the 1-year ARM averaged 5.65
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 30-year fixed-rate mortgages fell for the
5th consecutive week, amounting to a total decline of about 0.75
percentage points," said Frank Nothaft, Freddie Mac vice president
and chief economist. As a result, mortgage applications surged
nearly 58 percent since August 15, largely led by a 122 percent
gain in applications for refinancing, according to the Mortgage
Bankers Association (MBA).
"The MBA also reports that fixed-rate mortgages are currently
the predominant choice among homebuyers and families looking to
refinance. Over the first two weeks of September, 95 percent of new
applications were for fixed-rate mortgages. Since the end of 2007,
the number of ARM applications fell by almost 50 percent."
Freddie Mac is a stockholder-owned corporation established by
Congress in 1970 to provide liquidity, stability and affordability
to the nation's residential mortgage markets. Freddie Mac raises
capital on Wall Street and throughout the world's capital markets
to finance mortgages for families across America. Over the years,
Freddie Mac has made home possible for one in six homebuyers and
more than five million renters.
For more information, visit www.freddiemac.com.
