Campbell Communication survey: Mortgage servicers need to educate borrowers before default

Freddie Mac survey: Reversing trend, mortgage rates shoot upMortgagePress.comFreddie Mac, PMMS, housing market, rate watch, Primary Mortgage Market Survey, Frank Nothaft Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.09 percent with an average 0.7 point for the week ending Sept. 25, 2008, up from last week when it averaged 5.78 percent. Last year at this time, the 30-year FRM averaged 6.42 percent. The 15-year FRM this week averaged 5.77 percent with an average 0.6 point, up from last week when it averaged 5.35 percent. A year ago at this time, the 15-year FRM averaged 6.09 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.02 percent this week, with an average 0.6 point, up from last week when it averaged 5.67 percent. A year ago, the five-year ARM averaged 6.15 percent. One-year Treasury-indexed ARMs averaged 5.16 percent this week with an average 0.5 point, up from last week when it averaged 5.03 percent. At this time last year, the 1-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. "Mortgage rates followed Treasury bond yields higher this week amid market uncertainty over the current state of the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "Compared with last Thursday, 10-year Treasury yields are up about 0.3 percentage points, and 30-year fixed-rate loans moved up about the same amount. And while up, interest rates for 30-year FRMs are still more than 0.5 percentage points below this year's peak of 6.63 percent set the week of July 24. "The latest housing information for the third quarter continues to show some softness in prices and sales activity. House prices fell 5.3 percent over the twelve months ending in July weaker than the market consensusaccording to the Federal Housing Finance Agency's purchase-only house price index. During August, the median sales price of existing single-family homes (excluding condominiums and co-ops) fell 9.7 percent in August over August 2007, the largest 12-month drop since records began in 1968, according the National Association of Realtors (NAR). Overall resales dipped by 2.2 percent between July and August, on a seasonally-adjusted basis." For more information, visit www.freddiemac.com.