Property ManagementStable Financial Markets Keep A Lid On Mortgage Rates
Long- And Short-Term Rates Ease Back Slightly This Week
McLean, VA – In Freddie Mac"s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 7.13 percent, with an average 0.7 point, for the week ending April 5, 2002, down from 7.18 percent last week. Last year at this time, the 30-year FRM averaged 7.01 percent.
The average for the 15-year FRM this week is 6.64 percent, with an average 0.7 point, slipping from last week"s average of 6.69 percent. A year ago, the 15-year FRM averaged 6.54 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.99 percent this week, with an average 0.8 point, down from last week"s average of 5.11 percent. This time last year, the one-year ARM averaged 6.23 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Currently the market is relatively stable while it looks to see if there are any remaining weak spots in the economy, and if so, what those spots might be," said Frank Nothaft, Freddie Mac chief economist. "But, at the moment, there seems to be nothing that would indicate anything that might seriously disrupt the market and cause mortgage rates to rise appreciably.
"Jobless claims reported today were higher than expected, which says that the labor market may not have fully recovered from the earlier economic slowdown. If this were to continue, it could create something of a drag on the economy. However, March employment figures are due out tomorrow and should reflect additional job growth for the year. Although that could put some upward pressure on mortgage rates, Freddie Mac economists expect those rates will not rise much further any time in the near future."
SUMMARY OF SURVEY RESULTS
Fixed-Rate
Mortgages
Average
Conventional 30-Year Commitment Rate Fees
& Points Average Conventional 15-Year
Commitment Rate Fees
& Points
US
7.13
7.15
7.12
7.16
7.10
7.13
0.7
0.6
0.8
0.5
0.8
0.9
6.64
6.63
6.65
6.68
6.63
6.66
0.7
0.6
0.8
0.4
0.7
0.9
Northeast
Southeast
N. Central
Southwest
West
One-Year
Adjustable-Rate Mortgages First
Commitment Rate Fees
& Points Margin
US
4.99
5.05
5.01
5.11
4.78
4.98
0.8
0.7
1.0
0.6
0.8
0.9
2.78
2.78
2.77
2.79
2.78
2.78
Northeast Southeast
N. Central Southwest
West Freddie Mac defines its
regions as follows: Northeast: NY, NJ, PA, DE, MD, DC, VA, WV, PR,
ME, NH, VT, MA, RI, CT, VI Southeast: NC, SC, TN, KY, GA, AL, FL, MS
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 Freddie Mac"s Primary Mortgage Market Survey (PMMS)
is for informational purposes only and Freddie Mac is not responsible for business
decisions made based on the reported results of the PMMS. Freddie Mac may change
the methodology used to conduct the PMMS survey at any time and without notice.
DEFINITIONS Commitment
Rate is the interest rate a lender would charge to lend mortgage money to
a qualified borrower exclusive of the fees and points required by the lender.
This commitment rate applies only to conventional financing on conforming mortgages
with loan-to-value rates of 80 percent or less. ARM
Index - One-year Treasury Loan to Value Ratio (LTV)
is the ratio of the loan amount of a mortgage loan to the lower of the appraisal
value or purchase price of the property securing the loan. Origination
Fees and Discount Points are the total charged by the lender at settlement.
One point equals one percent of the loan amount. Margin
is a fixed amount added to the underlying index to establish the fully indexed
rate for an ARM. Weighted Averages for the
PMMS have been adjusted as of October 11, 2001. The new weights use the dollar
volume of conventional mortgage originations within the 1-unit Freddie Mac loan
limit as reported under the Home Mortgage Disclosure Act (HMDA) for 1999. The
weights are listed in the table below.
Freddie Mac Region PMMS
Weights
Northeast
22.2
Southeast
18.5
North Central
20.8
Southwest
14.4
West
24.0
Source: Freddie Mac