Freddie Mac PMMS: Long-term rates fall for eighth consecutive weekMortgagePress.comFreddie Mac, PMMS, Primary Mortgage Market Survey, ARMs, fixed-rate, 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 5.14 percent with an average 0.8 point for the week ending
Dec. 24, 2008, down from last week when it averaged 5.19 percent.
Last year at this time, the 30-year FRM averaged 6.17 percent. The
30-year FRM has not been lower since Freddie Mac started the
Primary Mortgage Market Survey in 1971.
The 15-year FRM this week averaged 4.91 percent with an average
0.7 point, down from last week when it averaged 4.92 percent. A
year ago at this time, the 15-year FRM averaged 5.79 percent. The
15-year FRM has not been lower since April 1, 2004, when it
averaged 4.84 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 5.49 percent this week, with an average 0.6 point,
down from last week when it averaged 5.60 percent. A year ago, the
5-year ARM averaged 5.90 percent.
One-year Treasury-indexed ARMs averaged 4.95 percent this week
with an average 0.6 point, up slightly from last week when it
averaged 4.94 percent. At this time last year, the 1-year ARM
averaged 5.53 percent. Average commitment rates should be reported
along with average fees and points to reflect the total cost of
obtaining the mortgage.
"Interest rates on 30-year fixed-rate mortgages eased for the
eighth straight week and set another record low since Freddie Mac's
survey began in 1971," said Frank Nothaft, Freddie Mac vice
president and chief economist. "Real GDP growth fell 0.5 percent in
the third quarter of the year, pulled down by the largest drop in
consumer spending since the second quarter of 1980. The market
consensus calls for an even larger decline in the last three months
of the year.
"The housing market, meanwhile, continues to contract. Existing
home sales (excluding condominiums and co-ops) fell 8.6 percent in
November to four million houses (annualized) in November,
representing the slowest pace since July 1997. Moreover, the median
sales price fell 12.8 percent from November 2007, the largest
12-month decline since records began in January 1968, according to
the National Association of Realtors."
For more information, visit www.freddiemac.com