US Mortgage Rates Continue Low Across the Board
Location: McLean
Author:
Eileen B. Fitzpatrick
Date: Monday, April 9, 2007
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.92 percent this week, with an average 0.6 point, up from last week when it averaged 5.88 percent. A year ago, the 5-year ARM averaged 6.11 percent.
One-year Treasury-indexed ARMs averaged 5.44 percent this week with an average 0.6 point, up slightly from last week when it averaged 5.43 percent. At this time last year, the 1-year ARM averaged 5.57 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
Mortgage rates have remained within a narrow band of 0.1 percentage points over every week in March," said Frank Nothaft, Freddie Mac vice president and chief economist. "This relative stability is due to mixed economic data releases as to how strong the economy is and whether future inflation will recede. One bright spot this week came from an unexpected increase in pending home sales for February, which suggests the housing market is still healthy.
"Looking forward, the upcoming March employment report and producer price index should offer further insight into the current state of the economy and give us an idea where interest rates are headed in the future."
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SUMMARY OF SURVEY RESULTS |
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Fixed-Rate Mortgages |
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| Average Conventional 30-Year Commitment Rate | Fees & Points | Average Conventional 15-Year Commitment Rate | Fees & Points | |
| US | 6.17 | 0.4 | 5.87 | 0.5 |
| Northeast | 6.18 | 0.3 | 5.90 | 0.3 |
| Southeast | 6.12 | 0.6 | 5.85 | 0.7 |
| North Central | 6.21 | 0.2 | 5.91 | 0.3 |
| Southwest | 6.16 | 0.4 | 5.89 | 0.5 |
| West | 6.17 | 0.6 | 5.83 | 0.7 |
|
Adjustable–Rate Mortgages |
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| 5/1 ARM Commitment Rate | Fees & Points |
Margin |
1 Year ARM Commitment Rate | Fees & Points | Margin | |
| US | 5.92 | 0.6 | 2.76 | 5.44 | 0.6 | 2.76 |
| Northeast | 5.90 | 0.4 | 2.79 | 5.53 | 0.5 | 2.76 |
| Southeast | 5.89 | 0.8 | 2.76 | 5.47 | 0.8 | 2.77 |
| North Central | 6.00 | 0.3 | 2.78 | 5.45 | 0.6 | 2.74 |
| Southwest | 5.93 | 0.7 | 2.76 | 5.31 | 0.5 | 2.88 |
| West | 5.91 | 0.8 | 2.74 | 5.38 | 0.8 | 2.73 |
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
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 26, 2006. The new weights use the dollar
volume of conventional mortgage originations within the 1-unit Freddie
Mac loan limit as reported under the Home Mortgage Disclosure Act (HMDA)
for 2005. The weights are listed in the table below.
|
Freddie Mac Region |
PMMS Weights |
|
Northeast |
24.5 |
|
Southeast |
18.6 |
|
North Central |
15.4 |
|
Southwest |
10.4 |
|
West |
31.0 |
PRIMARY MORTGAGE MARKET SURVEY RESULTS
30-YEAR FIXED RATE MORTGAGES
|
|
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|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
6.17 |
6.18 |
6.12 |
6.21 |
6.16 |
6.17 |
| Fees & Points |
0.4 |
0.3 |
0.6 |
0.2 |
0.4 |
0.6 |
15-YEAR FIXED RATE MORTGAGES
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.87 |
5.90 |
5.85 |
5.91 |
5.89 |
5.83 |
| Fees & Points |
0.5 |
0.3 |
0.7 |
0.3 |
0.5 |
0.7 |
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.92 |
5.90 |
5.89 |
6.00 |
5.93 |
5.91 |
| Fees & Points |
0.6 |
0.4 |
0.8 |
0.3 |
0.7 |
0.8 |
1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
|
|
||||||
|
US |
NE |
SE |
NC |
SW |
W |
|
| AVERAGE |
5.44 |
5.53 |
5.47 |
5.45 |
5.31 |
5.38 |
| Fees & Points |
0.6 |
0.5 |
0.8 |
0.6 |
0.5 |
0.8 |
THE NATIONAL MORTGAGE RATE SNAPSHOT
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|
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|
One Year Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.43 |
6.10 |
6.11 |
5.57 |
| Fees & Points |
0.6 |
0.5 |
0.6 |
0.7 |
|
|
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|
|
One Week Ago | |||
|
|
30-YR FRM |
15-YR FRM |
5/1 ARM |
1-YR ARM |
| AVERAGE |
6.16 |
5.86 |
5.88 |
5.43 |
| Fees & Points |
0.4 |
0.4 |
0.5 |
0.6 |
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.
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