Primary Mortgage Market Survey Press Release
ANOTHER RECORD LOW SET FOR LONG-TERM MORTGAGE RATES THIS WEEK
March 26, 2009
Contact: corprel@freddiemac.com
or (703) 903-3933
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 4.85 percent with an average 0.7 point for the week ending March 26, 2009, down from last week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 5.85 percent. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM.
The 15-year FRM this week averaged 4.58 percent with an average 0.7 point, downfrom last week when it averaged 4.61 percent. A year ago at this time, the 15-year FRM averaged 5.34 percent. The 15-year FRM has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 1991 for the 15-year FRM.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.96 percent this week, with an average 0.7 point, down from last week when it averaged 4.98 percent. A year ago, the 5-year ARM averaged 5.67 percent. The 5-year ARM has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 2005 for the 5-year ARM.
One-year Treasury-indexed ARMs averaged 4.85 percent this week with an average 0.6 point, down from last week when it averaged 4.91 percent. At this time last year, the 1-year ARM averaged 5.24 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“The Federal Reserve’s announcement that it intends to purchase Treasury securities over the next six months caused bond yields to drop and mortgage rates followed,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Rates for 30-Yr FRMs peaked last year at 6.63 percent on July 24th. With this week's 30-Yr FRM, the interest rate difference is almost 2 percentage points, which amounts to a savings of about $225 in monthly mortgage payments for a $200,000 loan.
“And potential homebuyers are taking notice of these historically low mortgage rates. Both new and existing home sales rose 5 percent in February. First-time homebuyers accounted for half of all existing home sales, according to the National Association of Realtors®. In addition, mortgage applications for home purchases consecutively rose over the first three weeks in March, based on figures published by the Mortgage Bankers Association.”
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 | 4.85 | 0.7 | 4.58 | 0.7 |
| Northeast | 4.90 | 0.7 | 4.61 | 0.7 |
| Southeast | 4.86 | 0.7 | 4.64 | 0.7 |
| N. Central | 4.85 | 0.7 | 4.57 | 0.7 |
| Southwest | 4.84 | 0.6 | 4.54 | 0.7 |
| West | 4.80 | 0.8 | 4.54 | 0.8 |
| Five/One-Year Adjustable-Rate Mortgages | |||
|---|---|---|---|
| First Commitment Rate | Fees & Points | Margin | |
| US | 4.96 | 0.7 | 2.74 |
| Northeast | 4.77 | 0.6 | 2.73 |
| Southeast | 4.88 | 0.9 | 2.75 |
| N. Central | 5.14 | 0.8 | 2.74 |
| Southwest | 4.94 | 0.6 | 2.79 |
| West | 5.10 | 0.7 | 2.71 |
| One-Year Adjustable-Rate Mortgages | |||
|---|---|---|---|
| First Commitment Rate | Fees & Points | Margin | |
| US | 4.85 | 0.6 | 2.75 |
| Northeast | 4.58 | 0.6 | 2.73 |
| Southeast | 5.05 | 0.6 | 2.75 |
| N. Central | 5.00 | 0.8 | 2.72 |
| Southwest | 4.84 | 0.7 | 2.84 |
| West | 4.88 | 0.4 | 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
March 26, 2009
| 30-Year Fixed Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.85 | 4.90 | 4.86 | 4.85 | 4.84 | 4.80 |
| Fees & Points | 0.7 | 0.7 | 0.7 | 0.7 | 0.6 | 0.8 |
| 15-Year Fixed Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.58 | 4.61 | 4.64 | 4.57 | 4.54 | 4.54 |
| Fees & Points | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.8 |
| 5/1-Year Adjustable Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.96 | 4.77 | 4.88 | 5.14 | 4.94 | 5.10 |
| Fees & Points | 0.7 | 0.6 | 0.9 | 0.8 | 0.6 | 0.7 |
| Margin | 2.74 | 2.73 | 2.75 | 2.74 | 2.79 | 2.71 |
| 1-Year Adjustable Rate Mortgages | ||||||
|---|---|---|---|---|---|---|
| US | NE | SE | NC | SW | W | |
| Average | 4.85 | 4.58 | 5.05 | 5.00 | 4.84 | 4.88 |
| Fees & Points | 0.6 | 0.6 | 0.6 | 0.8 | 0.7 | 0.4 |
| Margin | 2.75 | 2.73 | 2.75 | 2.72 | 2.84 | 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 | 5.87 | 5.27 | 5.56 | 5.15 | 4.98 | 4.61 | 4.98 | 4.91 |
| Fees & Points | 0.5 | 0.5 | 0.9 | 0.8 | 0.7 | 0.7 | 0.7 | 0.7 |
| Margin | N/A | N/A | 2.75 | 2.73 | N/A | N/A | 2.70 | 2.75 |