Fixed-Rate Mortgages Hold Steady, Remain Near Record Lows

News provided by

Freddie Mac

Sep 22, 2011, 10:00 ET

MCLEAN, Va., Sept. 22, 2011 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing fixed-rate mortgages changing little amid sluggish economic, mixed housing data, and ongoing concerns over the European debt markets. The 30-year fixed remained unchanged at 4.09 percent, while the 15-year fixed dropped a single basis point to 3.29 percent, marking a new record low.  

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.09 percent with an average 0.7 point for the week ending September 22, 2011, matching last week when it also averaged 4.09 percent. Last year at this time, the 30-year FRM averaged 4.37 percent.  
  • 15-year FRM this week averaged 3.29 percent with an average 0.6 point, down from last week when it averaged 3.30 percent. A year ago at this time, the 15-year FRM averaged 3.82 percent.  
  • 1-year Treasury-indexed ARM averaged 2.82 percent this week with an average 0.6 point, up from last week when it averaged 2.81 percent. At this time last year, the 1-year ARM averaged 3.46 percent.  

Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions.

Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

  • "A sluggish economy and investor concerns over the European debt markets left mortgage rates largely unchanged this week. Manufacturing activity in both the New York and Philadelphia regions contracted in September. Moreover, the Federal Reserve Board reported that households lost nearly $150 billion in net worth in the second quarter, representing the first quarterly decline in a year.
  • "Meanwhile, recent data on the housing market were mixed. The Census Bureau reported that new housing construction dipped five percent in August to an annual pace of 571,000 homes, and homebuilder confidence remained near record lows for September according to the NAHB/Wells Fargo Housing Market Index. Existing home sales, however, rose to 5.03 million homes in August, which represented the strongest annualized rate since March of this year."

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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.

SOURCE Freddie Mac