Freddie Mac PMMS: Slight labor market uptick cause mortgage rates to inch upward

Freddie Mac PMMS: Slight labor market uptick cause mortgage rates to inch upward

August 13, 2009

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.29 percent with an average 0.7 point for the week ending August 13, 2009, up from last week when it averaged 5.22 percent. Last year at this time, the 30-year FRM averaged 6.52 percent.
The 15-year FRM this week averaged 4.68 percent with an average 0.7 point, up from last week when it averaged 4.63 percent. A year ago at this time, the 15-year FRM averaged 6.07 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.75 percent this week, with an average 0.6 point, up from last week when it averaged 4.73 percent. A year ago, the 5-year ARM averaged 6.02 percent.
One-year Treasury-indexed ARMs averaged 4.72 percent this week with an average 0.4 point, down from last week when it averaged 4.78 percent. At this time last year, the 1-year ARM averaged 5.18 percent. Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
“Long-term fixed-rate mortgage rates rose slightly over the past week while initial rates on adjustable-rate mortgages (ARMs) were little changed,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Last week's release of July’s employment report showed a slight improvement in the declining labor market. The unemployment rate ticked down to 9.4 percent in July, representing the first monthly decline since April 2008. Approximately 247,000 jobs were lost, fewer than the market consensus and the smallest loss since August 2008. In addition, revisions added 43,000 employees to payrolls in May and June.
“Declines in some local housing markets may be nearing an end as well. Median existing home prices rose among 17 percent of major metropolitan areas in the second quarter from the same period last year, up from 12 percent showing gains during the first quarter, according the National Association of Realtors. This represents the greatest number of areas experiencing annual growth since the third quarter of 2008. Moreover, 81 percent of major cities had house prices rise between the first quarter and second quarter of this year, owing in part to seasonality.”
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