Freddie Mac Weekly Summary: Slight Increases in Mortgage Rates

by devteam July 23rd, 2009 | Share

<p class="MsoNormal"rnrnrnrnrn Normalrn 0rn MicrosoftInternetExplorer4rnrnrnrnrnst1:*{behavior:url(#ieooui) }rnrnrnrn&lt;!–rn /* Style Definitions */rn p.MsoNormal, li.MsoNormal, div.MsoNormalrn{mso-style-parent:"";rnmargin:0in;rnmargin-bottom:.0001pt;rnmso-pagination:widow-orphan;rnfont-size:12.0pt;rnfont-family:"Times New Roman";rnmso-fareast-font-family:"Times New Roman";}rn@page Section1rn{size:8.5in 11.0in;rnmargin:1.0in 1.3in 1.0in 128.15pt;rnmso-header-margin:.5in;rnmso-footer-margin:.5in;rnmso-paper-source:0;}rndiv.Section1rn{page:Section1;}rn–&gt;rnrnrnrn /* Style Definitions */rn table.MsoNormalTablern{mso-style-name:"Table Normal";rnmso-tstyle-rowband-size:0;rnmso-tstyle-colband-size:0;rnmso-style-noshow:yes;rnmso-style-parent:"";rnmso-padding-alt:0in 5.4pt 0in 5.4pt;rnmso-para-margin:0in;rnmso-para-margin-bottom:.0001pt;rnmso-pagination:widow-orphan;rnfont-size:10.0pt;rnfont-family:"Times New Roman";}rnrn Home buyers and refinancers waiting and hoping for a returnrnof record low rates suffered a setback last week as fixed rates reversed arnthree-week downward trend.

According to data from Freddie Mac’s Primary Mortgage MarketrnSurvey released this morning, the 30-year fixed-rate mortgage (FRM) rose torn5.20 percent with borrowers paying 0.70 points for the week ending July 23.  Last week the average was 5.14 percent withrn0.7 point.

The 15-year FRM increased from 4.63 percent to 4.68 percentrnthis week.  Fees and points werernunchanged at 0.7 point.

One-year Treasury-indexed adjustable rate mortgages (ARMs)rninched up a single basis point to 4.77 percent with fees and points alsornincreasing from 0.5 point to 0.6 point.

Five-year Treasury-indexed hybrid ARMs were the solernexception to the increases, dropping from 4.83 percent to 4.74 percent withrnfees and points unchanged at 0.7 point.

According to Frank Nothaft, Freddie Mac vicernpresident and chief economist, “Mortgage interest rates were mixed this pastrnweek with fixed-rate loans averaging somewhat higher while initial rates onrnARMs were flat-to-down slightly.  FederalrnReserve Chairman Bernanke, during his July 22 Senate testimony, noted thatrnmortgage rates are lower than they were last fall, in part because of thernFederal Reserve's actions, and housing affordability right now is the highestrnits been in many years.

“Newlyrnreleased housing indicators contain positive signs that the worst may be behindrnus. Home prices were down 5.6 percent between May 2008 and May 2009, thernsmallest 12-month decline since June 2008, based on the Federal Housing FinancernAgency’s monthly House Price Index. New construction of one-family homes jumpedrn14.4 percent in June to an annualized pace of 470,000 units, the most since Octoberrn2008, according to the Commerce Department. In addition, the NationalrnAssociation of Home Builders reported that homebuilders' assessments of marketrnconditions in July and for the remainder of this year strengthened to arn10-month high.”

On July 20 Fannie Mae released information on its weeklyrnyields for the period ended July 17. 

Conventional 30-year FRMs had an average yield of 4.96rnpercent compared to 4.79 percent a week earlier.  Conventional 15-year FRMs also increased,rnrising from 4.22 percent to 4.31 percent.

Government guaranteed FHA and VA loans were up from 5.51rnpercent to 5.67 percent.  The one-year ARMrnrose from 2.99 percent to 3.05 percent.

Fannie Mae yields are quoted net of servicing fees.


READ MORE: MND Explains Volatility in Mortgage Rates

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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