Freddie Mac PMMS: Slow economy and government actions lead to 11 weeks of lower 30-year fixed ratesMortgagePress.comFreddie Mac, PMMS, Primary Mortgage Market Survey, fixed-rate mortgage, ARMs
Freddie Mac has released the results of its Primary Mortgage
Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM)
averaged 4.96 percent with an average 0.7 point for the week ending
January 15, 2009, down from last week when it averaged 5.01
percent. Last year at this time, the 30-year FRM averaged 5.69
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 4.65 percent with an average
0.7 point, up from last week when it averaged 4.62 percent. A year
ago at this time, the 15-year FRM averaged 5.21 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 5.25 percent this week, with an average 0.6 point,
down from last week when it averaged 5.49 percent. A year ago, the
5-year ARM averaged 5.40 percent. The 5-year ARM has not been lower
since the week ending September 8, 2005, when it averaged 5.24
percent.
One-year Treasury-indexed ARMs averaged 4.89 percent this week
with an average 0.5 point, down from last week when it averaged
4.95 percent. At this time last year, the 1-year ARM averaged 5.26
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
11th straight week to another record low, due in part to the
slowing economy and government actions," said Frank Nothaft,
Freddie Mac vice president and chief economist. "So far, both the
U.S. Treasury Department and the Federal Reserve have added over
$100 billion in liquidity to the mortgage market since September
2008, which put downward pressure on interest rates for fixed-rate
mortgages. The Federal Reserve may add up to an additional $570
billion more this year, based on its November 25, 2008
announcement, to further shore up mortgage lending and keep rates
low.
"In December, the unemployment rate rose to 7.2 percent, the
highest since January 1993, and the economy lost 2.6 million jobs
over 2008, the largest annual drop since 1945. That brought down
yields on Treasury securities and mortgage rates followed."
For more information, visit www.freddiemac.com.
