Freddie Mac Weekly Mortgage Rate Commentary:
Long Term Mortgage Rates Remain Stable and Low
30-year fixed-rate mortgage: Averaged 5.01 percent with an average 0.7 point for the week ending February 4,
2010, up from last week when it averaged 4.98 percent. Last year at
this time, the 30-year FRM averaged 5.25 percent.
The 15-year fixed-rate mortgage:
Averaged 4.40 percent with an average 0.7 point, up slightly from last
week when it averaged 4.39 percent. A year ago at this time, the
15-year FRM averaged 4.92 percent.
Five-year indexed hybrid adjustable-rate mortgages ARMs:
Averaged 4.27 percent this week, with an average 0.6 point, up from
last week when it averaged 4.25 percent. A year ago, the 5-year ARM
averaged 5.26 percent.
One-year Treasury-indexed ARMs:
Averaged 4.22 percent this week with an average 0.5 point, down from
last week when it averaged 4.29 percent. At this time last year, the
1-year ARM averaged 4.92 percent.
Freddie Sayz
Mortgage rates remained relatively stable for a second week amid news
of a strengthening housing market, said Frank Nothaft, Freddie Mac vice
president and chief economist. Residential fixed investment rose for
two consecutive quarters over the last half of 2009 following a steady
quarterly decline since the beginning of 2006. Pending existing home
sales rebounded by 1 percent in December from a record drop in November
that was due in part to the original expiration of the homebuyer tax
credit, according the National Association of Realtors . More recently mortgage applications for home purchases jumped 10 percent at the end of January, according to figures from the Mortgage Bankers Association .
Even more encouraging news came from the Federal Reserves Senior Loan Officer Opinion Survey , which reported that banks have generally stopped tightening standards
on most types of loans in the fourth quarter of 2009, with commercial
real estate as the exception. However, banks have yet to unwind the
tightening that occurred over the last two years. Moreover,
substantially fewer banks expected credit quality to deteriorate over
the coming year.
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