Primary Mortgage Market Survey Press Release
30-Year Rates Near Record Breaking Levels
November 19, 2009
Contact: corprel@freddiemac.com
or (703) 903-3933
15-Year FRM Drops to Lowest Ever Recorded in Freddie Mac Survey History
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 4.83 percent with an average 0.7 point for the week ending November 19, 2009, down from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 6.04 percent.
The 15-year FRM this week averaged 4.32 percent with an average 0.6 point, down from last week when it averaged 4.36 percent. A year ago at this time, the 15-year FRM averaged 5.73 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.25 percent this week, with an average 0.6 point, down from last week when it averaged 4.29 percent. A year ago, the 5-year ARM averaged 5.87 percent.
The one-year Treasury-indexed ARM averaged 4.35 percent this week with an average 0.6 point, down from last week when it averaged 4.46 percent. At this time last year, the 1-year ARM averaged 5.29 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Interest rate on 30-year fixed-rate mortgage loans fell for the third consecutive week to the lowest since the week ending May 21st, while 15-year fixed rates were the lowest since our records began in 1991,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Low fixed rates throughout the third quarter prompted an estimated $1.1 trillion in refinancing activity, saving homeowners about $10 billion in aggregate monthly payments over the first 12 months of their new loan. Moreover, for the fourth consecutive quarter, more than 95 percent of prime borrowers who originally had an ARM selected a conventional fixed-rate mortgage in the third quarter of this year.
“Meanwhile, new home building showed some weakness in recent months. Residential construction eased 10.6 percent (annualized) between September and October, largely driven by a 33.3 percent decline in new condominium and apartment buildings and represented the slowest pace since records began in 1959. And homebuilder confidence in November remained a relatively low level, according to the National Association of Home Builders.”
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.
Summary of Survey Results
| Fixed-Rate Mortgages | ||||
|---|---|---|---|---|
| Average Conventional 30-Year Commitment Rate |
Fees & Points | Average Conventional 15-Year Commitment Rate |
Fees & Points | |
| US | 4.83 | 0.7 | 4.32 | 0.6 |
| Northeast | 4.85 | 0.7 | 4.30 | 0.6 |
| Southeast | 4.82 | 0.7 | 4.33 | 0.6 |
| N. Central | 4.90 | 0.6 | 4.37 | 0.5 |
| Southwest | 4.82 | 0.6 | 4.33 | 0.5 |
| West | 4.78 | 0.8 | 4.30 | 0.6 |
| Five/One-Year Adjustable-Rate Mortgages | |||
|---|---|---|---|
| First Commitment Rate | Fees & Points | Margin | |
| US | 4.25 | 0.6 | 2.74 |
| Northeast | 4.43 | 0.4 | 2.73 |
| Southeast | 4.05 | 0.7 | 2.75 |
| N. Central | 4.44 | 0.7 | 2.75 |
| Southwest | 4.14 | 0.6 | 2.75 |
| West | 4.18 | 0.6 | 2.73 |
| One-Year Adjustable-Rate Mortgages | |||
|---|---|---|---|
| First Commitment Rate | Fees & Points | Margin | |
| US | 4.35 | 0.6 | 2.75 |
| Northeast | 4.17 | 0.3 | 2.74 |
| Southeast | 4.53 | 0.7 | 2.75 |
| N. Central | 4.53 | 0.8 | 2.75 |
| Southwest | 4.19 | 0.8 | 2.78 |
| West | 4.36 | 0.7 | 2.75 |
Freddie Mac defines its regions as follows:
Northeast: NY, NJ, PA, DE, MD, DC, VA, WV, ME, NH, VT, MA, RI,
CT
Southeast: NC, SC, TN, KY, GA, AL, FL, MS, PR, VI
North Central: OH, IN, IL, MI, WI, MN, IA, ND, SD
Southwest: TX, LA, NM, OK, AR, MO, KS, CO, NE, WY
West: CA, AZ, NV, OR, WA, UT, ID, MT, HI, AK, GU
Freddie Mac's Primary Mortgage Market Survey (PMMS) is for informational purposes only and Freddie Mac is not responsible for business decisions made based on the reported results of the PMMS. Freddie Mac may change the methodology used to conduct the PMMS survey at any time and without notice.
DEFINITIONS
Commitment Rate is the interest rate a lender would charge to lend mortgage money to a qualified borrower exclusive of the fees and points required by the lender. This commitment rate applies only to conventional financing on conforming mortgages with loan-to-value rates of 80 percent or less.
ARM Index - is the One-year Treasury
Loan to Value Ratio (LTV) is the ratio of the loan amount of a mortgage loan to the lower of the appraisal value or purchase price of the property securing the loan.
Origination Fees and Discount Points are the total charged by the lender at settlement. One point equals one percent of the loan amount.
Margin is a fixed amount added to the underlying index to establish the fully indexed rate for an ARM.
Weighted Averages for the Primary Mortgage Market Survey have been adjusted as of October 16, 2008. The new weights use the dollar volume of conventional mortgage originations within the 1-unit Freddie Mac loan limit as reported under Home Mortgage Disclosure Act (HMDA) for 2007. The weights are listed in the table below.
| Freddie Mac Region | PMMS Weights |
| Northeast | 24.2 |
| Southeast | 19.8 |
| North Central | 15.1 |
| Southwest | 12.7 |
| West | 28.2 |
Primary Mortgage Market Survey Results
November 19, 2009
| 30-Year Fixed Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.83 | 4.85 | 4.82 | 4.90 | 4.82 | 4.78 |
| Fees & Points | 0.7 | 0.7 | 0.7 | 0.6 | 0.6 | 0.8 |
| 15-Year Fixed Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.32 | 4.30 | 4.33 | 4.37 | 4.33 | 4.30 |
| Fees & Points | 0.6 | 0.6 | 0.6 | 0.5 | 0.5 | 0.6 |
| 5/1-Year Adjustable Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.25 | 4.43 | 4.05 | 4.44 | 4.14 | 4.18 |
| Fees & Points | 0.6 | 0.4 | 0.7 | 0.7 | 0.6 | 0.6 |
| Margin | 2.74 | 2.73 | 2.75 | 2.75 | 2.75 | 2.73 |
| 1-Year Adjustable Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.35 | 4.17 | 4.53 | 4.53 | 4.19 | 4.36 |
| Fees & Points | 0.6 | 0.3 | 0.7 | 0.8 | 0.8 | 0.7 |
| Margin | 2.75 | 2.74 | 2.75 | 2.75 | 2.78 | 2.75 |
| The National Mortgage Rate Snapshot | ||||||||
|---|---|---|---|---|---|---|---|---|
| One Year Ago | One Week Ago | |||||||
| 30-YR | 15-YR | 5/1-YR | 1-YR ARM | 30-YR | 15-YR | 5/1-YR | 1-YR ARM | |
| Average | 6.04 | 5.73 | 5.87 | 5.29 | 4.91 | 4.36 | 4.29 | 4.46 |
| Fees & Points | 0.7 | 0.7 | 0.6 | 0.5 | 0.7 | 0.6 | 0.6 | 0.6 |
| Margin | N/A | N/A | 2.74 | 2.74 | N/A | N/A | 2.74 | 2.75 |