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Mortgage Rates Plunge In Freddie Mac Weekly Survey

September 12, 2008

Rates fell according to Freddie Ma's Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage (FRM) dropped to an average 5.93 percent with an average 0.7 point for the week ending September 11, 2008, comapred to last week when it averaged 6.35 percent. Last year at this time, the 30-year FRM averaged 6.31 percent.

The 15-year FRM this week averaged 5.54 percent with an average 0.7 point, down from last week when it averaged 5.90 percent. A year ago at this time, the 15-year FRM averaged 5.97 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.87 percent this week, with an average 0.7 point, down from last week when it averaged 5.97 percent. A year ago, the 5-year ARM averaged 6.17 percent.

One-year Treasury-indexed ARMs averaged 5.21 percent this week with an average 0.6 point, up from last week when it averaged 5.15 percent. At this time last year, the 1-year ARM averaged 5.66 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"Interest rates for 30-year fixed-rate mortgages are down almost 0.6 percentage points over the past 4 weeks, which will help to spur home purchases and loan refinancing in coming weeks," said Frank Nothaft, Freddie Mac vice president and chief economist. "This means that the monthly principal and interest payment on a new $200,000 loan is over $76 lower than a month ago.

"Lower rates have occurred at an opportune time, as the July pending sales data from the National Association of Realtors were off 3.2 percent from June. The Mortgage Bankers Association reported that refinance applications are up 18 percent over the past 3 weeks through September 5th, indicating that refinance activity has already begun to pick up."

The National Mortgage Rate Snapshop
This Week One Week Ago One Year Ago
30-Yr 15-Yr 5-Yr
1-Yr ARM
5.93 5.54 5.87 5.21
0.7 0.7 0.7 0.6
30-Yr 15-Yr 5-Yr
1-Yr ARM
6.35 5.90 5.97 5.15
0.7 0.6 0.6 0.6
30-Yr 15-Yr 5-Yr
1-Yr ARM
6.31 5.97 6.17 5.66
0.5 0.4 0.6 0.8

Source: Freddie Mac

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