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 6.24 percent with an average 0.4 point for the week ending November 8, 2007, down from last week when it averaged 6.26 percent. Last year at this time, the 30-year FRM averaged 6.33 percent. The 30-year FRM has not been this low since the week ending May 17, 2007, when it averaged 6.21 percent.
The 15-year FRM this week averaged 5.90 percent with an average 0.5 point, down from last week when it averaged 5.91 percent. A year ago, the 15-year FRM averaged 6.04 percent. The 15-year FRM has not been this low since the week ending May 10, 2007, when it averaged 5.87 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.89 percent this week, with an average 0.5 point, down from last week when it averaged 5.98 percent. A year ago, the 5-year ARM averaged 6.08 percent. The 5-year ARM has not been this low since the week ending May 10, 2007, when it averaged 5.89 percent.
One-year Treasury-indexed ARMs averaged 5.50 percent this week with an average 0.6 point, down from last week when it averaged 5.57 percent. At this time last year, the 1-year ARM averaged 5.55 percent. The 1-year ARM has not been this low since the week ending May 17, 2007, when it averaged 5.48 percent.
"Reports of weaker consumer spending in September and a decline in manufacturing activity in October kept mortgage rates at bay this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates for long-term mortgages were little changed while rates for ARMs fell following the Federal Reserve s interest-rate cut."
"With mortgage rates remaining low, approximately 38 percent of applications were for refinance transactions in the third quarter, down from 42 percent in the second quarter of this year. According to Freddie Mac's third quarter cash-out refinance report, approximately 87 percent of refinanced loans were for loan amounts that were 5 percent or more higher than the original balances. In addition, Freddie Mac estimates that families withdrew approximately $60 billion in home equity over the same quarter, down from about $81 billion in the second quarter 2007."