Fannie and Freddie Report Higher Borrowing Costs This Week

Most mortgage rates moved up during the most recent week according to information released on by both Fannie Mae and Freddie Mac.

The 30-year fixed-rate mortgage (FRM) was up ten basis points according to Freddie Mac's Primary Mortgage Market Survey for the week ended December 10.  The average was 4.81 percent for the week with fees and points unchanged at 0.07 point.

The 15-year FRM rose to 4.32 percent with 0.6 point compared to the week before when the average was 4.27 percent also with 0.6 point.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was also higher this week, rising to 4.26 percent with 0.5 point from 4.19 percent with 0.5 point.

The 1-year Treasury-indexed ARM was slightly lower for the week, moving from 4.25 percent to 4.24 percent.  Fees and points were unchanged at 0.7 point. 

“Following an upbeat employment report, long-term bond yields rose slightly and fixed mortgage rates followed,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The economy shed only 11,000 jobs in November, far fewer than the market consensus forecast, and the unemployment rate unexpectedly fell to 10 percent. In addition, revisions added 159,000 jobs to September and October.”

“Notwithstanding, rates on 30-year fixed mortgages are almost 0.7 percentage points below those at the same time last year. This translates into an $81 lower monthly payment on a $200,000 conventional mortgage.”

Fannie Mae's weekly yields which were announced earlier in the week were also higher.  The 30-year FRM for the week ended December 4 rose to 4.54 percent from 4.39 percent a week earlier.  The 1-year FRM averaged 3.910 compared to 3.82 a week earlier. Government guaranteed FHA and VA 30-year FRM loans were also higher, going from 5.33 percent to 5.45 percent for the week.  One-year ARMs increased 4 basis points to 2.95.

All Fannie Mae loans are reported without servicing fees.

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