Freddie and Fannie: Marginal Adjustments Made to Rates Last Week

Freddie Mac said mortgage rates were slightly higher during thernweek ending October 2,  according to their weekly Primary Mortgage MarketrnSurvey. 

Freddie Mac reported that the 30-year fixed-raternmortgage (FRM) averaged 5.03 percent for the week compared to an average raternof 5.0 percent a week earlier.  Fees andrnpoints averaged 0.7 point both weeks.

The 15-year FRM average increased three basis pointsrnto an average of 4.46 percent.   Fees andrnpoints were unchanged at 0.6 point. 

The rate for five-year Treasury-indexed hybridrnadjustable-rate mortgages (ARMs) increased slightly to 4.42 percent from 4.40rnpercent with fees and points remaining at 0.6 point and the one-yearrnTreasury-indexed ARM increased to 4.57 percent with 0.6 point from 4.54 percent,rnalso with 0.6 point.

Frank Nothaft, Freddie Mac vice president and chiefrneconomist said “Interest rates for 30-year fixed mortgages have averaged justrnbelow 5 percent this year, which is the lowest 10-month average since thernsurvey began in 1971.  As a result,rnrefinance activity has accounted for almost seven out of 10 mortgagernapplications on average, according to Freddie Mac's survey.

“Economic data release this week offered mixedrnsignals as to the current state of the housing market.  For example, total existing home sales jumpedrn9.4 percent to an annualized rate of 5.57 million homes in September, thernstrongest pace since July 2007, according to the National Association ofrnRealtors®.  However, new home salesrnunexpectedly fell 3.6 percent to 402,000 houses, the weakest since June of thisrnyear, based on figures from the Department of Commerce.  Nonetheless, stronger housing demand hasrnlowered the inventory of unsold existing homes in September to the lowest sincernJanuary of this year and for new homes the lowest since November 1982, whichrnshould help stabilize falling house prices.”

Earlier in the week Fannie Mae reported on itsrnposted yields for the week ended October 23. rnAll yields are quoted on a net basis and do not include servicing fees.

The yield for the 30-year FRM was 4.74 percent, downrnslightly from the 4.76 percent yield reported a week ago.  The 15-year FRM also was down slightly torn4.12 percent from 4.13 percent. rnGovernment guaranteed FHA/VA loan yields were unchanged at 5.54 percent.

The one-year ARM also had a slightly lower yield ofrn2.91 percent compared to 3.0 percent during the week ended October 17.

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