Freddie Mac Survey Finds 30-Year FRM Rates Down

The 30-year mortgage rate dropped slightly from where it was at the end of 2009 during the first week of 2010, according to the most recent Freddie Mac Primary Mortgage Market Survey. The average rate for the 30-year fixed rate mortgages slipped to 5.09% from 5.14% the week before but was up from the exceptionally low rate of 5.01% for the same week a year ago. The average 15-year FRM rate slid to 4.50% from 4.54% the previous week and 4.62% a year ago. The average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages remained stable week-to-week at 4.44% and was down from 5.49% a year ago. The average one-year Treasury ARM rate was 4.31%, down from 4.33% the week before and 4.95% a year ago. Frank Nothaft, Freddie Mac's chief economist, said fixed rates are near their annual average for 2009 but ARM rates are considerably below last year's averages. He noted that ARM rates could rise later this year if the Federal Reserve begins to tighten short-term rates as largely expected. He said activity in the Fed Funds futures market suggests there will not be any Federal Reserve action until the second half of 2010.