Blog
GSEs: Rates Lower in Week Ending October 8, 2009
Mortgage rates just keep going down according torndata released this week by both Fannie Mae and Freddie Mac.
Freddie Mac's PrimaryrnMortgage Market Survey for the week ended October 8 showed an average rate forrnthe 30-year fixed-rate mortgage (FRM) of 4.87 percent with 0.7 point. During the previous week the average was 4.94rnpercent also with 0.7 point. This is thernlowest the 30-year rate has been since the week ended May 21 when it averagedrn4.82 percent.
The 15-year FRM set yetrnanother record this week with a rate that averaged 4.33 percent with 0.7 point. Last week the average was 4.36 percent withrn0.6 point. This is the fourthrnconsecutive week that the 15-year has reached new lows for the 15 years FreddiernMac has tracked the mortgage.
The five-yearrnTreasury-indexed hybrid adjustable-rate mortgage (ARM) also set a new recordrnlow at 4.35 percent with 0.5 point, down from 4.42 percent with 0.6 point. Freddie Mac first started reporting on weeklyrnaverages for the hybrid in January, 2005.
One-year Treasury-indexedrnARMs averaged 4.53 percent, an increase from last week when it averaged 4.49rnpercent. Fees and points were unchangedrnat 0.5 point.
Fannie Mae's weekly yields for the weekrnended October 2 also showed significant decreases for fixed rate mortgages. The 30 year FRM was down 21 basis points tornan average of 4.49 percent. The 15-yearrnFRM which was at 4.07 during the week ended September 25 dropped to 4.01 duringrnthe most recent period. Government guaranteedrnVA/FHA loans, however, saw an increase in the average rate from 5.28 percent torn5.49 percent.
The one-year ARM was also up slightly,rnfrom 2.91 percent to 2.93 percent.
All Fannie Mae yields are quoted net ofrnservicing and other fees.
“Long-term mortgage rates eased further thisrnweek,” said Frank Nothaft, Freddie Mac vice president and chiefrneconomist. “Interest rates for 30-year fixed-rate loans were the lowestrnsince mid-May; 15-year FRMs were at a record low since data were firstrncollected in 1991 and 5-year ARMs also hit an all-time record starting inrn2005. Compared to a year ago, consumers could shave almost $134 off theirrnmonthly mortgage payments on a 30-year fixed-rate loan for $200,000 byrnrefinancing.
“Such lowrnrates are spurring mortgage demand. Mortgage applications surged to a 19-weekrnhigh over the week ending on October 2nd, according to the MortgagernBankers Association. Moreover, applications for home purchases were atrnthe strongest pace since the beginning of this year.”
All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.
Latest Articles
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 SurgingAug 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 FranciscoIt was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...
Comments
Leave a Comment