Freddie Mac PMMS: Continuing slow economic signals see mortgage rates fall for all productsMortgagePress.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 5.04 percent with an average 0.7 point for the week ending
Feb. 19, 2009, down from last week when it averaged 5.16 percent.
Last year at this time, the 30-year FRM averaged 6.04 percent.
The 15-year FRM this week averaged 4.68 percent with an average
0.6 point, down from last week when it averaged 4.81 percent. A
year ago at this time, the 15-year FRM averaged 5.64 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 5.04 percent this week, with an average 0.6 point,
down from last week when it averaged 5.23 percent. A year ago, the
five-year ARM averaged 5.37 percent.
One-year Treasury-indexed ARMs averaged 4.80 percent this week
with an average 0.5 point, down from last week when it averaged
4.94 percent. At this time last year, the one-year ARM averaged
4.98 percent.
Average commitment rates should be reported along with average
fees and points to reflect the total cost of obtaining the
mortgage.
"Mortgage rates followed bond yields lower this week as recent
economic reports suggest the economy is still slowing, which
reduces the future threat of inflation," said Frank Nothaft,
Freddie Mac vice president and chief economist. "And consumer
sentiment fell in February for the first time in three months to
near its lowest level since May 1980, while industrial production
slowed in January by more than the market consensus. In addition,
the Federal Reserve lowered its growth forecasts for this year
during its policy-setting meeting on Jan. 27-28, noting a deeper
contraction in the economy as the credit crunch tightens.
"Meanwhile, the housing market is not doing any better. New
housing construction slowed to an all-time record low of 466,000
homes (annualized) in January since records began in January 1959.
And although homebuilder confidence ticked up in February from a
record low, builder expectations of sales over the next six months
hit a record low since it was first published in January 1985."
For more information, visit www.freddiemac.com.
