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 4.95 percent with an average 0.7 point for the week ending March 11, 2010, down from last week when it averaged 4.97 percent. Last year at this time, the 30-year FRM averaged 5.03 percent.

The 15-year FRM this week averaged 4.32 percent with an average 0.7 point, down from last week when it averaged 4.33 percent. A year ago at this time, the 15-year FRM averaged 4.64 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.05 percent this week, with an average 0.6 point, down from last week when it averaged 4.11 percent. A year ago, the 5-year ARM averaged 4.99 percent.

The 1-year Treasury-indexed ARM averaged 4.22 percent this week with an average 0.6 point, down from last week when it averaged 4.27 percent. At this time last year, the 1-year ARM averaged 4.80 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

“During a light week of mixed economic reports, mortgage rates eased somewhat,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Pending existing home sales fell 7.6 percent in January, well below the market consensus of a 1 percent gain. Meanwhile, the economy lost only 36,000 jobs in February, fewer than market forecasts, and the unemployment rate held steady at 9.7 percent. In addition, revisions added a net 35,000 workers to January and December combined.”

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

Source: FreddieMac, Primary Mortgage Market Survey® (PMMS®), www.freddiemac.com

According to the results of Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending March 5, 2010, the Market Composite Index which is a measure of mortgage loan application volume increased 0.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.2 percent compared with the previous week.

The weekly applications survey covers roughly 50 percent of all residential mortgage originations and tracks the average interest rate for 30 year and 15 year fixed rate mortgages, 1 year ARMs as well as application volume for both purchase and refinances applications.

The Refinance Index fell 1.5 percent the previous week and the seasonally adjusted Purchase Index increased 5.7 percent compared to the previous week. The unadjusted Purchase Index increased 7.2 percent compared to a week earlier and was 10.7 percent below the same week last year’s figure.

The four week moving average for the seasonally adjusted Market Index is up 0.8 percent. The four week moving average is up 0.7 percent for the seasonally adjusted Purchase Index, while this average is up 1.0 percent for the Refinance Index.

The refinance share of mortgage activity fell to 67.2 percent of total applications from 69.1 percent a week earlier. The refinance share is at its lowest level since it was 66.1 percent in October 2009. The adjustable-rate mortgage (ARM) share of activity increased to 5.1 percent from 4.8 percent of total applications from the previous week. This is the highest ARM share since November 2009 when it was 5.3 percent.

The average contract interest rate for 30-year fixed-rate mortgages rose to 5.01 percent from 4.95 percent, with points falling to 0.82 from 0.99 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 4.32 percent from 4.27 percent, with points decreasing to 0.88 from 1.36 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.80 percent from 6.77 percent, with points increasing to 0.3 from 0.29 (including the origination fee) for 80 percent LTV loans.

The extremely harsh winter weather in January and February didn’t help pending home sales as it fell sharply to its lowest reading since April 2009 and the National Association of Realtors expects more declines in the future.

NAR’s pending home sales index fell to a seasonally adjusted reading of 90.4 which is 7.6 percent down from December but still 12.3 percent above January 2009’s index reading. The index is considered a forward-looking indicator or gauge of future sales because there is a one to two month lag from the contract signing to sales completion. A reading of 100 is equal to the average level of sales activity in 2001, when the index begun.

“January pending sales, though still higher than one year ago, remain much lower than expected given that a large number of potential buyers are eligible for the expanded home buyer tax credit,” said NAR chief economist Lawrence Yun. “Moreover, the abnormally severe and prolonged winter weather, which affected large regions of the US, hampered shopping activity in February.”

Regionally, the West got the biggest drop in pending sales where pending sales declined 13.2 percent from December. However, the pending sales index is 1.4 percent above its January 2009 reading.

In the Midwest, pending sales dropped 8.9 percent from December but 11.8 percent above same month last year’s level.

In the Northeast, the index declined 8.7 percent but is 20.5 percent above January 2009 reading.

In the South, there was a 2.1 percent decline from December and 18 percent above the same month last year’s level.

“We will see weak near-term sales followed by a likely surge of existing-home sales in April, May and June,” Yun said. “The real question is what happens in the second half of the year. If there is sufficient job creation, housing can become self-sustaining with stable to modestly rising home prices because inventory has been trending downward.”

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 4.97 percent with an average 0.7 point for the week ending March 4, 2010, down from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 5.15 percent.

The 15-year FRM this week averaged 4.33 percent with an average 0.7 point, down from last week when it averaged 4.40 percent. A year ago at this time, the 15-year FRM averaged 4.72 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.11 percent this week, with an average 0.6 point, down from last week when it averaged 4.16 percent. A year ago, the 5-year ARM averaged 5.08 percent.

The 1-year Treasury-indexed ARM averaged 4.27 percent this week with an average 0.6 point, up from last week when it averaged 4.15 percent. At this time last year, the 1-year ARM averaged 4.86 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"30-year fixed mortgages fell below 5 percent to match levels seen two weeks ago and are helping to maintain affordable home-purchase conditions," said Frank Nothaft, Freddie Mac vice president and chief economist. "In fact, monthly principal and interest mortgage payments for a typical family buying a median-priced home of $163,800 were just $709 in January, the lowest amount since February 1998, according to the National Association of Realtors® . For first-time homebuyers, the fourth quarter of 2009 was the third most affordable quarter since 1981 behind the first and second quarter of 2009.

"The federal tax credit for homebuyers, which expires on April 30th, may make housing even more affordable for some families already in the middle of the home buying process. In fact, the Federal Reserve's March 3rd regional economic review noted that several districts attributed stronger home sales to the homebuyer tax credit."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

The Mortgage Bankers Association (MBA) has released its Weekly Mortgage Applications Survey for the week ending Feb. 26, 2010. Mortgage loan application volume increased last week for the first time in a month as borrowing rates declined which boosted purchases and refinancing mortgage activities.

The Market Composite Index, a measure of mortgage loan application volume, climbed 14.6 percent on a seasonally adjusted basis compared with the previous week. On an unadjusted basis, the Index increased 15.5 percent compared to a week earlier.

“Mortgage applications rebounded last week, particularly refis, as rates dropped back below 5 percent,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Purchase activity remains subdued, with application volumes remaining within the narrow range seen in the last few months.”

The Refinance Index climbed 17.2 percent and the Purchase Index increased 9 percent after reaching the lowest level in more than 12 years a week earlier.

The four week moving average for the seasonally adjusted Market Index is up 0.4 percent. The four week moving average is down 2.7 percent for the seasonally adjusted Purchase Index, while this average is up 1.8 percent for the Refinance Index.

The average rate on a 30-year fixed loan dropped to 4.95 percent from 5.04 the prior week.

The average rate on a 15-year fixed mortgage fell to 4.27 percent from 4.35 percent. The rate on a one-year adjustable mortgage dropped to 6.77 percent from 6.80 percent.

The share of refinance mortgage increased to 69.1 percent of total applications from 68.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.8 percent from 4.7 percent of total applications compared to the week earlier.