Mortgage Rates Move Lower

Mortgage Rates Move Lower

MCLEAN, VA–(Marketwired – Sep 19, 2013) – Freddie Mac
(OTCQB: FMCC) today released the results of its Primary Mortgage Market
Survey®
(PMMS®), showing average fixed mortgage rates moving lower
amid signs of a weakening economic recovery, which in part also prompted the
Federal Reserve (Fed) to continue its bond buying program. Mortgage rates have
increased more than one percentage point since early May when speculation about
Fed tapering began.

News Facts

30-year fixed-rate mortgage (FRM)
averaged 4.50 percent with an average 0.7 point for the week ending September
19, 2013, down from last week when it averaged 4.57 percent. A year ago at this
time, the 30-year FRM averaged 3.49 percent.

15-year FRM this week averaged 3.54
percent with an average 0.7 point, down from last week when it averaged 3.59
percent. A year ago at this time, the 15-year FRM averaged 2.77 percent.

5-year Treasury-indexed hybrid adjustable-rate
mortgage
(ARM) averaged 3.11 percent this week with an average 0.5 point,
down from last week when it averaged 3.22 percent. A year ago, the 5-year ARM
averaged 2.76 percent.

1-year Treasury-indexed ARM averaged
2.65 percent this week with an average 0.4 point, down from last week when it
averaged 2.67 percent. At this time last year, the 1-year ARM averaged 2.61
percent.

Average commitment rates should be reported along with average
fees and points to reflect the total upfront cost of obtaining the mortgage.
Visit the following links for the Regional and National
Mortgage Rate Details
and Definitions.
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.

“Mortgage rates drifted downwards this week amid signs of a
weakening economic recovery. Retail sales
rose 0.2 percent in August which was nearly half of July’s 0.4 percent
increase. In addition, industrial production
in August grew 0.4 percent, less than the market consensus forecast. And
lastly, consumer sentiment
fell for the second consecutive month in September to the lowest reading since
April.

“This, in part, was why the Federal Reserve chose to maintain
its MBS and bond-buying program at its September 12th and 13th monetary policy
committee meeting. It also cited the
tightening of financial conditions observed in recent months, which in the case
of the housing market means the rise in mortgage rates since May.”

Source: FreddieMac

 

SUMMARY
OF FREDDIE MAC SURVEY RESULTS

 

 

30-Year
Fixed Rate Mortgages
US West
Average 4.50 4.46
Fees
& Points
0.7 0.7
15-Year
Fixed Rate Mortgages
US West
Average 3.54 3.48
Fees
& Points
0.7 0.7
5/1-Year
Adjustable Rate Mortgages
US West
Average 3.11 2.95
Fees
& Points
0.5 0.6
Margin 2.74 2.74
1-Year
Adjustable Rate Mortgages
US West
Average 2.65 2.50
Fees
& Points
0.4 0.4
Margin

The
National Mortgage Rate Snapshot
One Year
Ago
One Week
Ago
  30-YR 15-YR 5/1-YR 1-YR ARM 30-YR 15-YR 5/1-YR 1-YR ARM
Average 3.49 2.77 2.76 2.61 4.57 3.59 3.22 2.67
Fees
& Points
0.6 0.6 0.6 0.4 0.8 0.7 0.5 0.4
Margin N/A N/A 2.75 2.76 N/A N/A 2.75 2.77

 

 

Sept 19, 2013

Source: Freddie Mac

2.75 2.75

 

 

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