RISMEDIA, February 27, 2010—Freddie Mac recently released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.05% with an average 0.7 point for the week ending February 25, 2010, up from last week when it averaged 4.93%. Last year at this time, the 30-year FRM averaged 5.07%.
The 15-year FRM this week averaged 4.40% with an average 0.7 point, up from last week when it averaged 4.33%. A year ago at this time, the 15-year FRM averaged 4.68%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.16% this week, with an average 0.6 point, up from last week when it averaged 4.12%. A year ago, the 5-year ARM averaged 5.06%.
The 1-year Treasury-indexed ARM averaged 4.15% this week with an average 0.6 point, down from last week when it averaged 4.23%. At this time last year, the 1-year ARM averaged 4.81%.
“Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5% 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.”
For more information, visit www.freddiemac.com.