McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.37 percent with an average 0.5 point for the week ending October 3, 2007, down from last week when it averaged 6.42 percent. Last year at this time, the 30-year FRM averaged 6.30 percent.
The 15-year FRM this week averaged 6.03 percent with an average 0.5 point, down from last week when it averaged 6.095.98 percent. A year ago, the 15-year FRM averaged 5.98 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.11 percent this week, with an average 0.5 point, down from last week when it averaged 6.15 percent. A year ago, the 5-year ARM averaged 6.00 percent.
One-year Treasury-indexed ARMs averaged 5.58 percent this week with an average 0.6 point, down from last week when it averaged 5.60 percent. At this time last year, the 1-year ARM averaged 5.46 percent.
"Mortgage rates eased slightly this week following three weeks of increases. The initial effects of the credit market turmoil that began in August are starting to emerge in housing statistics," said Frank Nothaft, Freddie Mac vice president and chief economist. "New home sales in August fell to the slowest pace in more than seven years and the median sales price had the largest twelve-month decline since 1970. Moreover, August's pending existing home sales fell to the lowest level on record, which begins in 2001."
"Prior to August, the housing sector had already lost 260,000 jobs over the twelve-month period ending July 2007 while the overall economy had a net gain of 1.8 million new non-farm payroll employees. In addition, the housing market (through consumption and investment) shed about a percentage point off of GDP growth for the twelve-month period ending June 2007."