Freddie Mac PMMS: Mortgage rates hold steady MortgagePress.comFreddie Mac, PMMS, Primary Mortgage Market Survey, ARMs, 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 5.10 percent with an average 0.7 point for the week ending
Jan. 29, 2009, down from last week when it averaged 5.12 percent.
Last year at this time, the 30-year FRM averaged 5.68 percent.
The 15-year FRM this week averaged 4.80 percent with an average
0.7 point, unchanged last week when it averaged 4.80 percent. A
year ago at this time, the 15-year FRM averaged 5.17 percent.
Five-year Treasury-indexed hybrid, adjustable-rate mortgages
(ARMs) averaged 5.27 percent this week, with an average 0.6 point,
up from last week when it averaged 5.24 percent. A year ago, the
5-year ARM averaged 5.32 percent.
One-year Treasury-indexed ARMs averaged 4.90 percent this week
with an average 0.6 point, down from last week when it averaged
4.92 percent. At this time last year, the one-year ARM averaged
5.05 percent.
Average commitment rates should be reported along with average
fees and points to reflect the total cost of obtaining the
mortgage.
"Mortgage rates held steady this week," said Frank Nothaft,
Freddie Mac vice president and chief economist. "The index of
leading indicators rose 0.3 percent in December, the first increase
in six months, fueled by an expansion in the money supply. However,
the Federal Reserve acknowledged in its Jan. 28 policy committee
statement that since December the economy has weakened further.
"Both the S and P/Case-Shiller 20-city composite index, which
registered an 18 percent annual decline through November, and the
National Association of Realtors (NAR) sales data, down 15 percent
in December from a year ago, indicate sharply lower house prices
across many U.S. metropolitan areas. At the same time, interest
rates for 30-year fixed-rate mortgages reached a 50-year low toward
the end of December. These two factors contributed to housing
affordability reaching its highest level since 1973, as measured by
the NAR's monthly affordability index and help to explain the 7.0
percent increase in existing home sales in December. For more
information, visit www.freddiemac.com.
