Freddie Mac PMMS: Another record low set for long-term mortage rates this weekMortgagePress.comFreddie Mac, Primary Mortgage Market Survey, fixed-rate mortgage, Federal Reserve, Frank Noth
Freddie Mac has released the results of its Primary Mortgage
Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM)
averaged 4.85 percent with an average 0.7 point for the week ending
March 26, 2009, down from last week when it averaged 4.98 percent.
Last year at this time, the 30-year FRM averaged 5.85 percent. The
30-year FRM has not been lower in the life of Freddie Mac's weekly
survey, which dates back to 1971 for the 30-year FRM.
The 15-year FRM this week averaged 4.58 percent with an average
0.7 point, down from last week when it averaged 4.61 percent. A
year ago at this time, the 15-year FRM averaged 5.34 percent. The
15-year FRM has never been lower in the life of Freddie Macs weekly
survey, which dates back to 1991 for the 15-year FRM.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 4.96 percent this week, with an average 0.7 point,
down from last week when it averaged 4.98 percent. A year ago, the
5-year ARM averaged 5.67 percent. The 5-year ARM has never been
lower in the life of Freddie Macs weekly survey, which dates back
to 2005 for the 5-year ARM.
One-year Treasury-indexed ARMs averaged 4.85 percent this week
with an average 0.6 point, down from last week when it averaged
4.91 percent. At this time last year, the 1-year ARM averaged 5.24
percent.
Average commitment rates should be reported along with average
fees and points to reflect the total cost of obtaining the
mortgage.
"The Federal Reserve's announcement that it intends to purchase
Treasury securities over the next six months caused bond yields to
drop and mortgage rates followed," said Frank Nothaft, Freddie Mac
vice president and chief economist. "Rates for 30-Yr FRMs peaked
last year at 6.63 percent on July 24th. With this week's 30-Yr FRM,
the interest rate difference is almost 2 percentage points, which
amounts to a savings of about $225 in monthly mortgage payments for
a $200,000 loan.
"And potential homebuyers are taking notice of these
historically low mortgage rates. Both new and existing home sales
rose five percent in February. First-time homebuyers accounted for
half of all existing home sales, according to the National
Association of Realtors. In addition, mortgage applications for
home purchases consecutively rose over the first three weeks in
March, based on figures published by the Mortgage Bankers
Association."
For more information, visit www.freddiemac.com.
