Freddie Mac PMMS: Almost two points lower than peak in October, 30-year FRM ties record low reached in AprilMortgagePress.comfixed-rate mortgage, Freddie Mac, PMMS, statistics, Primary Mortgage Market Survey, adjustable-rate mortgage
Freddie Mac has released the results of its Primary Mortgage
Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM)
averaged 4.78 percent with an average 0.7 point for the week ending
April 30, 2009, down from last week when it averaged 4.80 percent.
Last year at this time, the 30-year FRM averaged 6.06 percent. The
30-year FRM now equals the record low that was set the week of
April 7, 2009. It has never been recorded lower in Freddie Macs
survey, which goes back to 1970.
The 15-year FRM this week averaged 4.48 percent with an average
0.7 point, unchanged for the third week in a row. A year ago at
this time, the 15-year FRM averaged 5.59 percent. This is tied with
the last two weeks for the lowest the 15-year FRM has been since
Freddie Mac began tracking it in August 1991.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 4.80 percent this week, with an average 06 point,
down from last week when it averaged 4.85 percent. A year ago, the
5-year ARM averaged 5.73 percent. This is the lowest the 5-year ARM
has been since Freddie Mac began tracking it in January 2005.
One-year Treasury-indexed ARMs averaged 4.77 percent this week
with an average 0.7 point, down from last week when it averaged
4.82 percent. At this time last year, the 1-year ARM averaged 5.29
percent.
Average commitment rates should be reported along with average
fees and points to reflect the total cost of obtaining the
mortgage.
"Rates for fixed-rate mortgages hovered at record lows this week
as ARM rates eased further," said Frank Nothaft, Freddie Mac vice
president and chief economist. "Mortgage rates for 30-year fixed
rate mortgages, the most popular loan among homebuyers and families
seeking to refinance, are more than 1.6 percentage points below the
recent peak set at the end of October 2008. For a $200,000 loan,
this means a monthly savings of almost $212 in mortgage payments or
over $2,500 per year. In aggregate, borrowers who refinanced during
the first quarter reduced their mortgage payments by about $2.5
billion over the coming year.
"he housing market may be edging towards a bottom. Existing home
sales stayed near its four-month average in March while new home
sales were stronger than the market consensus. More importantly,
the inventory of unsold new homes fell to the lowest number since
January 2002. And, the S&P/Case-Shiller 20-city composite index
did not show a record year-over-year decline in February for the
first time since December 2006. Finally, housing affordability hit
record highs in the first quarter of this year, according to
figures from the National Association of Realtors, which date back
to January 1971."
For more information, visit www.freddiemac.com.
