Freddie Mac’s Primary Mortgage Market Survey – Week Ending Jan. 26, 2012

Mortgage Rates Reverse Course on Positive Housing Data

Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates climbing as the housing market ended 2011 on a high note. The 30-year fixed-rate mortgage averaged 3.98 percent reversing its previous three-week trend of setting all-time record lows. Despite the jump, this marks the eighth consecutive week the 30-year fixed has remained below 4.00 percent.

News Facts

• 30 year fixed mortgages (FRM) averaged 3.98 percent with an average 0.7 point for the week ending January 26, 2012, up from last week when it averaged 3.88 percent. Last year at this time, the 30-year FRM averaged 4.80 percent.
• 15 year fixed mortgages this week averaged 3.24 percent with an average 0.8 point, up from last week when it averaged 3.17 percent. A year ago at this time, the 15-year FRM averaged 4.09 percent.
• 5 Year ARMs averaged 2.85 percent this week, with an average 0.7 point, up from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 3.70 percent.
• 1 Year ARMs averaged 2.74 percent this week with an average 0.6 point, matching last week when it averaged 2.74 percent. At this time last year, the 1-year ARM averaged 3.26 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Borrowers may still pay closing costs which are not included in the survey.

Quotes

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

• “Fixed mortgage rates ticked up this week as the housing market ended 2011 on a high note.  New construction of one-family homes rose 4.4 percent in December to an annualized rate of 470,000, the most since April 2010. Existing home sales increased 5.0 percent at the end of the year to 4.61 million houses, the largest amount since May 2010. Furthermore, pending home sales in November and December averaged the highest reading since the March and April 2010 period.”

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

About Freddie Mac’s Primary Mortgage Market Survey

Beginning in April 1971, Freddie Mac’s Primary Mortgage Market Survey® (PMMS®) has contacted lenders each week asking the rates and points for their most popular mortgage products which now include the 30 year fixed mortgage, 15 year fixed mortgage, 5 Year ARM and 1 year ARM. The survey is based on first-lien prime conventional conforming mortgages with a loan-to-value of 80 percent.

Currently, Freddie Mac surveys about 125 lenders each week consisting of thrifts, credit unions, commercial banks and mortgage lending companies in roughly the same proportion each type of lender commands in business in the mortgage marketplace.

The survey is conducted Monday – Wednesday with the results posted on Thursdays. Average rates and points (and margin for ARMs) for each product are reported for the nation and the five Freddie Mac regions.

PMMS results have evolved into the foremost representative source of regional and national mortgage rate trends and are relied upon by the mortgage industry and the public in gauging market conditions and evaluating mortgage loan options.