Freddie Mac PMMS: Weaker jobs market leads to lower mortgage ratesMortgagePress.comFreddie Mac, Primary Mortgage Market Survey, FRM, 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 6.20 percent with an average 0.7 point for the week ending
Nov. 6, 2008, down from last week when it averaged 6.46 percent.
Last year at this time, the 30-year FRM averaged 6.24 percent.
The 15-year FRM this week averaged 5.88 percent with an average
0.7 point, down from last week when it averaged 6.19 percent. A
year ago at this time, the 15-year FRM averaged 5.90 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 6.19 percent this week, with an average 0.6 point,
down from last week when it averaged 6.36 percent. A year ago, the
5-year ARM averaged 5.89 percent.
One-year Treasury-indexed ARMs averaged 5.25 percent this week
with an average 0.4 point, down from last week when it averaged
5.38 percent. At this time last year, the 1-year ARM averaged 5.50
percent. Average commitment rates should be reported along with
average fees and points to reflect the total cost of obtaining the
"Mortgage rates fell this week amid new indications of a
pullback in consumer spending and a weaker jobs market," said Frank
Nothaft, Freddie Mac vice president and chief economist. "The
economy shrank by 0.3 percent in the third quarter, led by the
first decline in consumer spending since the fourth quarter of
1991. In September alone, consumer spending fell by the most since
June 2004. More recently, job layoffs more than doubled in October
compared to September on year-over-year basis.
"With the economy contracting and experiencing record home
foreclosures, lenders tightened their credit standards further,
according to the October Federal Reserve Senior Loan Officer
survey. Approximately 70 percent of banks raised their lending
standards for prime mortgages and about 90 percent of banks that
offer nontraditional mortgages did so as well."
For more information, visit www.freddiemac.com.