Freddie Mac PMMS: Rates hit five percent, up from previous week
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged five percent with an average 0.7 point for the week ending Oct. 22, 2009, up from last week when it averaged 4.92 percent. Last year at this time, the 30-year FRM averaged 6.04 percent. The 15-year FRM this week averaged 4.43 percent with an average 0.6 point, up from last week when it averaged 4.37 percent. A year ago at this time, the 15-year FRM averaged 5.72 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.40 percent this week, with an average 0.6 point, up from last week when it averaged 4.38 percent. A year ago, the five-year ARM averaged 6.06 percent. The one-year Treasury-indexed ARM averaged 4.54 percent this week with an average 0.6 point, down from last week when it averaged 4.60 percent. At this time last year, the one-year ARM averaged 5.23. Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
“Following bond yields, long-term mortgages rates edged up slightly this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Although rates for 5/1 ARMs and traditional one-year ARMs are around half a percentage point below 30-year fixed mortgages, consumers appear to be seeking the stability of fixed-rate mortgages. According to the Mortgage Bankers Association, ARMs averaged only about six percent of the number of mortgage applications in September and October thus far."
“The housing market is still trying to recover in the second half of the year," said Nothaft. "The Federal Reserve reported in its Oct. 21 regional economic review that housing market conditions improved in recent weeks, primarily from a pickup in sales of low-to medium-priced houses. However, residential construction activity was reported to remain weak in most areas. New construction of single family homes rebounded in September, rising at a 3.9 percent annual rate, but did not erase all of the declines set in August, based on figures released by the Department of Commerce. Moreover, homebuilder confidence, as measured by the National Association of Homebuilder’s Housing Market Index, fell slightly in October and marked the first decline since January of this year.”
For more information, visit FreddieMac.com.
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