15-Year FRM and 5-Year ARM Remain Unchanged From Previous Week

Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.17 percent with an average 0.5 point for the week ending December 27, 2007, up from last week when it averaged 6.14 percent as well. Last year at this time, the 30-year FRM averaged 6.18 percent.

The 15-year FRM this week averaged 5.79 percent with an average 0.5 point, unchanged from last week when it also averaged 5.79 percent. A year ago at this time, the 15-year FRM averaged 5.93 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.90 percent this week, with an average 0.5 point, also unchanged from last week when it averaged 5.90 percent. A year ago, the 5-year ARM averaged 5.98 percent.

One-year Treasury-indexed ARMs averaged 5.53 percent this week with an average 0.7 point, up from last week when it was 5.51 percent. At this time last year, the 1-year ARM averaged 5.47 percent.

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

"Stronger consumer spending and an increase in the core price deflator in November caused long-term bond yields to inch up over the end of last week and beginning of this week, with mortgage rates following," said Frank Nothaft, Freddie Mac vice president and chief economist. "Offsetting some of the increase, however, was a decline in November's index of leading economic indicators and a weak manufacturing report in Philadelphia for December.

"House prices continued to decline in October, falling nearly 16 percent (annualized), and represented the fifteenth consecutive monthly decline according to the Standard & Poor's/Case-Shiller 20-city composite index. Seventeen of the twenty metropolitan areas displayed negative growth from October 2006. Falling house prices and tightened credit standards will likely slow consumer spending somewhat over the near term."

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