Freddie Mac PMMS: Bond yields pull long-term mortgage rates down to near record lows this weekMortgagePress.comFreddie Mac, GSEs, Primary Mortgage Market Survey, fixed-rate mortgage, 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 4.98 percent with an average 0.7 point for the week ending
March 19, 2009, down from last week when it averaged 5.03 percent.
Last year at this time, the 30-year FRM averaged 5.87 percent. The
30-year FRM has not been lower since the week ending Jan. 15, 2009,
when it hit an all-time low of 4.96 percent in Freddie Mac's weekly
survey survey.
The 15-year FRM this week averaged 4.61 percent with an average
0.7 point, down from last week when it averaged 4.64 percent. A
year ago at this time, the 15-year FRM averaged 5.27 percent. The
15-year FRM has not been lower since the week ending June 13, 2003,
when it averaged 4.60 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 4.98 percent this week, with an average 0.7 point,
down from last week when it averaged 4.99 percent. A year ago, the
5-year ARM averaged 5.56 percent.
One-year Treasury-indexed ARMs averaged 4.91 percent this week
with an average 0.7 point, up from last week when it averaged 4.80
percent. At this time last year, the 1-year ARM averaged 5.15
percent.
Average commitment rates should be reported along with average
fees and points to reflect the total cost of obtaining the
mortgage.
"Long-term mortgages followed bond yields lower for the second
week as reports of slower industrial production suggested that
business spending might ease this year," said Frank Nothaft,
FreddieMac vice president and chief economist. "Output at factories
declined for the fourth consecutive month by 1.4 percent in
February driven by declines in computers and machinery and
experienced the largest 12-month drop since June 1975. In addition,
factory capacity utilization slumped to 70.9 percent, matching the
lowest rate since records began in January 1967.
"Following the March 18 Federal Reserve monetary policy
statement, which announced further spending initiatives on
financial assets, long-term bond yields plummeted. Yields on
10-year Treasury bonds fell by about a half percentage point after
the announcement, marking the largest one-day decline since Oct.
20, 1987."
For more information, visit www.freddiemac.com.
