|
Mortgage
Rates
|
Rate |
|
|
 |
| MOST RECENT STATISTIC: |
5.01% |
|
|
| GRADE: |
A+ |
|
|
| PERIOD COVERED: |
02/04/10 |
|
|
| Date Released: |
02/04/10 |
|
|
| Next Release: |
02/11/10 |
|
|
|
|
|
02/04/10 |
01/28/10 |
01/21/10 |
02/05/09 |
02/07/08 |
|
| Freddie Mac: |
5.01% |
4.98% |
4.99% |
5.25% |
5.67% |
| Fees & Points: |
0.7 |
0.6 |
0.7 |
0.8 |
0.4 |
| Change in Mtg Pmt*: |
- |
0.3% |
0.2% |
(2.7%) |
(7.1%) |
| Other Source: |
|
|
|
|
|
| HSH |
5.50% (02/04/10, 0.25 pts) |
|
| * From
date noted through current |
Analysis for the Housing Market
By:Ken Lee
Average national mortgage rates increased from the previous week as current 30-year fixed mortgage rates averaged 5.01%, with an average 0.7 points for the week ending February 4th according to Freddie Mac's Primary Mortgage Market Survey. Average fixed rates posted weekly declines for the first four weeks of the year before recording its first weekly increase this past week. Mortgage payments based on a $100,000 loan are down 2.7% from the same time last year and are down 7.1% from this time two years ago.
The 15-year fixed-rate mortgage increased slightly to 4.40% with an average 0.7 points compared to 4.39% in the previous week.
The average rate on a one-year treasury-indexed ARM declined to 4.22% with 0.5 points compared to 4.29% last week.
Regionally, rates were lowest in the Southwest at 4.95% (with an average 0.6 points and fees) and West region at 5.00% (with an average 0.9 points and fees) last week. On the high end was the Northeast region at 5.05% (with an average 0.6 points and fees) and Southeast region at 5.01% (with an average 0.6 points and fees).
It is important to note that Freddie Mac started tracking 30-year FRM's in 1971. The survey had an average for the 30 year fixed rate mortage of 6.41% for 2006. The average rate for the 30-year FRM in 2007 was 6.33%. In 2008, the average rate for a 30-year FRM is 6.03%. In 2009, the average rate for a 30-year FRM is 5.04%. So far in 2010, the average rate for a 30-year fixed-rate mortgage is 5.03%.
The Federal Housing Finance Agency (FHFA) announced the conforming loan limits for 2009 will remain unchanged from 2008 levels. The 1 unit(detached or attached) conforming loan limit was raised in 2006 which represented a 15% increase from the previous year to $417,000 and has remained unchanged since. This is the largest percentage increase in conforming limits since 1987. By raising the conforming limit more homeowners will be able to take advantage of lower interest rates and lower down payments, which will help stablize demand as mortgage rates continue to rise.
Definitions and Importance for the Housing
Market
By:Ken Lee
Mortgage rates reflect the cost to a homebuyer of borrowing money for the purchase or refinance of a home. Mortgage rates are generally the interest rate that a lender would charge to lend money to a borrower, and do not include other costs such as fees and points.
Mortgage rates shown on this site are from Freddie Mac and HSH Associates. The Federal Home Loan Mortgage Corporation, otherwise known as Freddie Mac, conducts weekly national surveys of 125 lenders to determine the average rate of 30-year fixed-rate and 1-year adjustable-rate mortgages on conforming loans. Conforming loans are lower-priced loans that meet the Freddie Mac underwriting standards. Therefore, the quality of the loans is very consistent from period to period. The mortgage rates are relatively low, however, because they do not include jumbo mortgages, which have higher interest rates because the loans are riskier and more difficult to securitize and sell on the secondary market. The mortgage rate for the week ending on Friday is published every Thursday.
Freddie Mac survey results are the most widely used by the mortgage industry and public to evaluate market conditions and mortgage loan options. Freddie Mac does not make loans, but rather purchases mortgages from approved primary lenders, thereby functioning in what is called the "secondary" mortgage market. The process of purchasing mortgages from primary lenders replenishes the supply of funds so that more loans can be made to home buyers. The typical number of points paid up front on Freddie Mac loans is 1.0, or 1.0% of the loan amount.
HSH Associates does not issue loans, but rather is a publisher of consumer loan information, which includes mortgage, auto, and commercial loans. HSH Associates' mortgage information is derived from surveys of over 2,000 lenders in major metropolitan areas across the country, and is published in both daily and weekly reports. Rather than surveying the marketing department, HSH surveyors speak directly to the policy makers in the mortgage company. We include HSH on our web site because their statistics are frequently quoted. Their rates are typically higher than the Freddie Mac rates, because their rates include jumbo loans. The typical number of points paid on a HSH loan is 50 to 80, whereas the typical number of points paid on a Freddie Mac loan is 100 (actual numbers for both vary from period to period). We recommend monitoring the Freddie Mac rates to consistently follow changes in mortgage rates. Jumbo mortgages will be at higher rates.
Mortgage rates vary by region and metropolitan area. However, we do not track changes in mortgage rates for specific areas. Information regarding average mortgage rates within metropolitan areas is available on Bankrate.com's website.
For more information on mortgage rates, go to:
http://www.freddiemac.com/pmms/
http://www.hsh.com/
© 2005 Hanley Wood LLC.
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