Freddie Mac PMMS: Mortgage rates climb, but still very affordableMortgagePress.comFreddie Mac, PMMS, 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 5.25 percent with an average 0.8 point for the week ending
Feb. 5, 2009, up from last week when it averaged 5.10 percent. Last
year at this time, the 30-year FRM averaged 5.67 percent.
The 15-year FRM this week averaged 4.92 percent with an average
0.8 point, up from last week when it averaged 4.80 percent. A year
ago at this time, the 15-year FRM averaged 5.15 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 5.26 percent this week, with an average 0.6 point,
down slightly from last week when it averaged 5.27 percent. A year
ago, the 5-year ARM averaged 5.21 percent. One-year
Treasury-indexed ARMs averaged 4.92 percent this week with an
average 0.5 point, up from last week when it averaged 4.90 percent.
At this time last year, the 1-year ARM averaged 5.03 percent.
Average commitment rates should be reported along with average
fees and points to reflect the total cost of obtaining the
"Interest rates for fixed-rate mortgages rose this week amid
economic reports that were somewhat better than consensus forecasts
had anticipated," said Frank Nothaft, Freddie Mac vice president
and chief economist. "The economy slowed by 3.8 percent in the
fourth quarter of 2008, less than the market consensus, with
inflationary pressures held at bay. Meanwhile, personal incomes
fell by only half as much as some market forecasters predicted.
"Low mortgage rates and falling house prices have made housing
the most affordable in 19 years. The National Association of
Realtors monthly affordability index rose to an all-time record
high in December 2008 since records began in January 1971. As a
result, pending existing home sales rose 6.3 percent in December
2008 and were up 2.1 percent from the previous December."
For more information, visit www.freddiemac.com.