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Freddie Mac PMMS finds rates just below five percent for the week
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.97 percent with an average 0.7 point for the week ending March 4, 2010, down from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 5.15 percent. The 15-year FRM this week averaged 4.33 percent with an average 0.7 point, down from last week when it averaged 4.40 percent. A year ago at this time, the 15-year FRM averaged 4.72 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.11 percent this week, with an average 0.6 point, down from last week when it averaged 4.16 percent. A year ago, the five-year ARM averaged 5.08 percent.
The one-year Treasury-indexed ARM averaged 4.27 percent this week with an average 0.6 point, up from last week when it averaged 4.15 percent. At this time last year, the one-year ARM averaged 4.86 percent. Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
“30-year fixed mortgages fell below five percent to match levels seen two weeks ago and are helping to maintain affordable home-purchase conditions,” said Frank Nothaft, Freddie Mac vice president and chief economist. “In fact, monthly principal and interest mortgage payments for a typical family buying a median-priced home of $163,800 were just $709 in January, the lowest amount since February 1998, according to the National Association of Realtors. For first-time homebuyers, the fourth quarter of 2009 was the third most affordable quarter since 1981 behind the first and second quarter of 2009. The federal tax credit for homebuyers, which expires on April 30, may make housing even more affordable for some families already in the middle of the home buying process. In fact, the Federal Reserve’s March 3rd regional economic review noted that several districts attributed stronger home sales to the homebuyer tax credit.”
For more information, visit www.freddiemac.com.
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