Long-Term Rates Rise to Over 5
Percent for the First Time in Three Weeks
McLean, VA – Freddie Mac (NYSE:FRE) today
released the results of its Primary Mortgage Market Survey® (PMMS®) in which
the 30-year fixed-rate mortgage (FRM) averaged 5.05 percent with an average
0.7 point for the week ending February 25, 2010, up from last week when it
averaged 4.93 percent. Last year at this time, the 30-year FRM averaged 5.07
percent.
The 15-year FRM this week averaged 4.40
percent with an average 0.7 point, up from last week when
it averaged 4.33 percent. A year ago at this time, the
15-year FRM averaged 4.68 percent.
The 5-year Treasury-indexed hybrid
adjustable-rate mortgage (ARM) averaged 4.16 percent this week, with an
average 0.6 point, up from last week when it averaged 4.12 percent. A year
ago, the 5-year ARM averaged 5.06 percent.
The 1-year Treasury-indexed ARM averaged
4.15 percent this week with an average 0.6 point, down from last week when
it averaged 4.23 percent. At this time last year, the 1-year ARM averaged
4.81 percent.
(Average commitment rates should be
reported along with average fees and points to reflect the total cost of
obtaining the mortgage.)
“Interest rates
for 30-year fixed mortgages followed long-term bond yields higher and rose
above 5 percent this week amid a mixed set of economic data reports” said
Frank Nothaft, Freddie Mac vice president and chief economist. “For
instance, the January producer price index jumped well above the market
consensus, but the consumer price index remained subdued and consumer
confidence declined to the lowest level since April 2009, according to the
Conference Board.
“There were also
varying reports as to the current state of the housing market. The
S&P/Case-Shiller® national home price index rose for the third
consecutive quarter in the fourth quarter, albeit at a slower rate, and the
20-city composite index showed an increase in December 2009 for the seventh
month in a row; six metropolitan areas experienced positive year-over-year
growth, compared to four in November. New home sales, however, unexpectedly
slowed in January to the smallest pace since records began in 1963, and the
supply of homes at the current sales rate rose to 9.1 months, the most since
May 2009.”
Freddie Mac was established by Congress in
1970 to provide liquidity, stability and affordability to the nation's
residential mortgage markets. Freddie Mac supports communities across the
nation by providing mortgage capital to lenders. Over the years, Freddie Mac
has made home possible for one in six homebuyers and more than five million
renters. |