Mortgage Rates Remain Flat

While mortgage rates remained flat over the last week, there is room for rates to move down, said Sam Khater, Freddie Macs Chief Economist.

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Provider:

GlobeNewswire, Inc.

Retrieved on:

Thursday, April 9, 2020

Information

Tags:

Mortgage industry of the United States, Economy, Mortgage loan, Finance, Freddie Mac, Commitment rate, Subprime mortgage crisis, Subprime crisis background information

Geotags:

McLean, VA, Us

Organisation:

FREDDIE MAC

Summary

Key Points:

While mortgage rates remained flat over the last week, there is room for rates to move down, said Sam Khater, Freddie Macs Chief Economist.
This year the 10-year Treasury market has declined by over a full percentage point, yet mortgage rates have only declined by one-third of a point.
As financial markets continue to heal, we expect mortgage rates will drift lower in the second half of 2020.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage.

MCLEAN, Va., April 09, 2020 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.33 percent, unchanged from last week.

“While mortgage rates remained flat over the last week, there is room for rates to move down,” said Sam Khater, Freddie Mac’s Chief Economist. “This year the 10-year Treasury market has declined by over a full percentage point, yet mortgage rates have only declined by one-third of a point. As financial markets continue to heal, we expect mortgage rates will drift lower in the second half of 2020.”

News Facts

30-year fixed-rate mortgage averaged 3.33 percent with an average 0.7 point for the week ending April 9, 2020, unchanged from last week. A year ago at this time, the 30-year FRM averaged 4.12 percent.
15-year fixed-rate mortgage averaged 2.77 percent with an average 0.6 point, down from last week when it averaged 2.82 percent. A year ago at this time, the 15-year FRM averaged 3.60 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.40 percent with an average 0.3 point, unchanged from last week. A year ago at this time, the 5-year ARM averaged 3.80 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

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