Freddie Mac Reports Mortgage Rates Continue Up This Week

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(MCLEAN, VA) -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.94 percent with an average 0.7 point for the week ending December 17, 2009, up from last week when it averaged 4.81 percent.  Last year at this time, the 30-year FRM averaged 5.19 percent.

The 15-year FRM this week averaged 4.38 percent with an average 0.6 point, up from last week when it averaged 4.32 percent.  A year ago at this time, the 15-year FRM averaged 4.92 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.37 percent this week, with an average 0.6 point, up from last week when it averaged 4.26 percent.  A year ago, the 5-year ARM averaged 5.60 percent.

The 1-year Treasury-indexed ARM averaged 4.34 percent this week with an average 0.5 point, up from last week when it averaged 4.24 percent.  At this time last year, the 1-year ARM averaged 4.94 percent. 

"Mortgage rates followed bond yields higher once again this week amid signs of an improving economy," said Frank Nothaft, Freddie Mac vice president and chief economist.  "On the consumer side, retail sales jumped 1.3 percent in November and consumer sentiment, as measured by the University of Michigan, rose above the market consensus forecast to the highest reading since September.  Industrial production also showed large gains in November.

"Interest rates on 30-year fixed-rate mortgages have remained below five percent over the past seven weeks and are contributing to a wave of refinance activity.  Roughly three out of four mortgage applications were for refinancing during the first two weeks of December, according the Mortgage Bankers Association."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

Summary of Survey Results



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

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