Fannie and Freddie: Mortgage Rates Fell Last Week

by devteam September 10th, 2009 | Share

Both Fannie Mae and Freddie Mac reported that average interest rates edged down during the most recent weeks for which data is available.

According to Freddie Mac’s Primary Mortgage Market Survey for the week ended September 10, the 30-year fixed-rate mortgage (FRM) averaged 5.07 percent with .07 point compared to 5.08 percent also with .07 point the week before.

The 15-year FRM declined four basis points to an average of 4.50 percent.  Fees and points increased from 0.6 point to .07 point.

Five-year Treasury-indexed hybrid adjustable rate mortgages (ARMs) had an average contract interest rate of 4.51 percent with .05 point compared to the previous week’s average of 4.59 percent with .06 point.

One-year Treasury-indexed hybrid ARMs edged up slightly to 4.64 from 4.62 percent.  Fees and points were unchanged at .06 point.

Fannie Mae reported more substantial decreases in fixed rate yields for the period ending September 4.

Yields on the 30-year FRM dropped from 4.91 percent to 4.79 percent.  Average 15-year yields were down 10 basis points to 4.17.  Government guaranteed FHA and VA 30-year loans were also down from 5.48 percent to 5.37 percent.

However, the yield on the one-year ARM was up slightly to 2.98 percent from 2.92 percent.

All Fannie Mae yields are reported net of servicing fees.

Frank Nothaft, Freddie Mac vice president and chief economist, commented, “Mortgage rates remained historically low over the past two weeks, keeping housing very affordable.  As a result, mortgage applications leapt 17 percent over the week ended September 4, led by a 23 percent jump in refinancing demand, according [to] the Mortgage Bankers Association.  In fact, nearly three out of five applications were for refinancing current loans.

“While the economy lost 216,000 jobs during August, it was the smallest monthly job loss since August 2008.  This and the Federal Reserve’s latest “Beige Book” suggest that the economy may be on the road to recovery.  Based on information up through late August, most Federal Reserve Bank districts noted that their business contacts remained cautiously positive that economic activity was stabilizing in July and August.  Two out of the 12 districts also indicated that local house prices were firming.”

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...