Freddie Mac has released today its Primary Mortgage Market Survey (PMMS) for the week ending on February 24, 2011. A drop in the interest rates can be seen for every loan category over the previous week. It is particularly noteworthy to see the rate of 30-year fixed-rate mortgage falling from the last week’s 5 percent mark.
The FRM averaged this week with 4.95 percent, which is the least in the last two weeks. It is good for the borrowers to see the rates coming down from 5.05 percent, which is at the same time encouraging for the home-buying industry. The fees and points have also come down to 0.6 percent from 0.7 the previous week.
Freddie Mac is a federally-chartered institution that came into being in 1970 with an objective to help stabilize the residential mortgage market of the country. Included in its objective is an intention to expand homeownership and affordable rental housing opportunities to each and all.
As a major player in the secondary mortgage market, it purchases mortgage loans and mortgage-related securities originated by a bank, lender or a financing firm. These mortgages are repackaged into guaranteed securities, which they call PCs, and are finally sold to investors.
The primary mortgage market survey conducted each week is an indicator to see how the mortgage industry has behaved during the week. The PMMS rates for the other loan categories are given in the following paragraph.
For 15 Year Fixed Rate Mortgage, the average rate was 4.22 percent with 0.7 points. The 5/1-Year Adjustable rate mortgage has averaged 3.80 percent while the 1-Year ARM saw an increase of just 0.01 point to settle at 3.40 percent during the week. The discount points were 0.6 in both the cases and the margin remained 2.74 and 2.76 respectively.