Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.07 percent with an average 0.7 point for the week ending Sept. 10, 2009, down from last week when it averaged 5.08 percent. Last year at this time, the 30-year FRM averaged 5.93 percent. The 15-year FRM this week averaged 4.50 percent with an average 0.7 point, down from last week when it averaged 4.54 percent. A year ago at this time, the 15-year FRM averaged 5.54 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.51 percent this week, with an average 0.5 point, down from last week when it averaged 4.59 percent. A year ago, the five-year ARM averaged 5.87 percent. One-year Treasury-indexed ARMs averaged 4.64 percent this week with an average 0.6 point, down from last week when it averaged 4.62 percent. At this time last year, the 1-year ARM averaged 5.21 percent. Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
“Mortgage rates remained historically low over the past two weeks, keeping housing very
affordable,” said Frank Nothaft, Freddie Mac vice president and chief economist. “As a result,
mortgage applications leapt 17 percent over the week ending September 4, led by a 23 percent
jump in refinancing demand, according the Mortgage Bankers Association. In fact, nearly three
out of five applications were for refinancing current loans.
“While the economy lost 216,000 jobs during August, it was the smallest monthly job loss since August 2008. This and the Federal Reserve’s latest “Beige Book” suggest that the economy may be on the road to recovery. Based on information up through late August, most Federal Reserve Bank districts noted that their business contacts remained cautiously positive that economic activity was stabilizing in July and August. Two out of the 12 districts also indicated that local house prices were firming.”
For more information, visit www.freddiemac.com.