Freddie Mac: Mortgage Rates Drop Slightly for the Week

February 17, 2011 (Chris Moore)
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Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows a drop in long-term fixed rates this week. Fixed rate mortgage loan rates are generally at about the same level they were a year ago, but adjustable rate mortgage (ARM) loan rates are slightly lower.

  • 30-year fixed-rate mortgage (FRM) averaged 5.0 percent with an average 0.7 point for the week ending February 17, 2011, down from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 4.93 percent.
  • 15-year FRM this week averaged 4.27 percent with an average 0.7 point, down from last week when it averaged 4.29 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87 percent this week, with an average 0.6 point, down from last week when it averaged 3.92 percent. A year ago, the 5-year ARM averaged 4.12 percent.
  • 1-year Treasury-indexed ARM averaged 3.39 percent this week with an average 0.6 point, up from last week when it averaged 3.35 percent. At this time last year, the 1-year ARM averaged 4.23 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Fixed mortgage rates eased slightly this week and continue to be very affordable. Prior to 2009, interest rates for 30-year fixed-rate mortgages had never been at 5 percent since our survey began in April 1971. In both 1981 and 1982, the rates were over three times as high as they are today.”

And…

“The housing market is struggling to regain traction despite still historically low rates. New construction on one-family homes dipped slightly in January to an annualized pace of 413,000 units, which was the fewest number since May 2009. In addition, homebuilder confidence didn’t improve for the third consecutive month in February and remains near record lows, according the NAHB/Wells Fargo Housing Market Index.”

30-Year Fixed Rate Mortgages
  US NE SE NC SW W
Average 5.00 5.04 4.95 5.04 5.04 4.96
Fees & Points 0.7 0.7 0.9 0.6 0.6 0.8

15-Year Fixed Rate Mortgages
  US NE SE NC SW W
Average 4.27 4.30 4.23 4.30 4.32 4.21
Fees & Points 0.7 0.7 0.9 0.5 0.6 0.8

5/1-Year Adjustable Rate Mortgages
  US NE SE NC SW W
Average 3.87 3.96 3.77 3.99 3.84 3.76
Fees & Points 0.6 0.7 0.8 0.4 0.6 0.7
Margin 2.75 2.78 2.75 2.72 2.77 2.74

1-Year Adjustable Rate Mortgages
  US NE SE NC SW W
Average 3.39 3.53 3.19 3.71 3.38 3.18
Fees & Points 0.6 0.6 0.7 0.3 0.8 0.7
Margin 2.76 2.79 2.75 2.73 2.77 2.75

The National Mortgage Rate Snapshot
  One Year Ago One Week Ago
  30-YR 15-YR 5/1-YR 1-YR ARM 30-YR 15-YR 5/1-YR 1-YR ARM
Average 4.93   4.33   4.12   4.23   5.05   4.29   3.92   3.35  
Fees & Points 0.7   0.6   0.5   0.6   0.7   0.7   0.6   0.6  
Margin N/A N/A 2.74   2.75   N/A N/A 2.75   2.76  

Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates