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 5.68 percent with an average 0.4 point for the week ending January 31, 2008, up from last week when it averaged 5.48 percent. Last year at this time, the 30-year FRM averaged 6.34 percent. .
The 15-year FRM this week averaged 5.17 percent with an average 0.4 point, up from last week when it averaged 4.95 percent. A year ago at this time, the 15-year FRM averaged 6.06 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.32 percent this week, with an average 0.4 point, up from last week when it averaged 5.13 percent. A year ago, the 5-year ARM averaged 6.04 percent.
One-year Treasury-indexed ARMs averaged 5.05 percent this week with an average 0.7 point, up from last week when it was 4.99 percent. At this time last year, the 1-year ARM averaged 5.54 percent
"Mortgage rates ended their five-week descent this week, with average rates on 30-year and 15-year fixed rate mortgages coming up by about 0.2 percentage points," said Frank Nothaft, Freddie Mac vice president and chief economist. "This increase completely erased the previous week's decline. The movement in fixed mortgage rates was broadly consistent with the movements of Treasury bonds over the week."
"Reinforcing the Fed's resolution to thwart a recession, the Federal Open Market Committee announced another cut in the target federal funds rate by half of a percentage point in their most recent scheduled meeting. This came on the heels of the Fed's rate cut of three-quarters of a percentage point the previous week, and the shaping-up of a fiscal stimulus package by Congress and the White House. This cut was in line with market expectations."