Freddie Mac released the results of its Primary Mortgage Market Survey on Jan. 2, which showed that average fixed mortgage rates continue to edge higher as we enter the new year.
Freddie Mac's Primary Mortgage Market Survey surveys lenders each week on the rates and points for their most popular 30-year fixed-rate, 15-year fixed-rate, 5/1 hybrid amortizing adjustable-rate and 1-year amortizing adjustable-rate mortgage products. The survey is based on first-lien prime conventional conforming mortgages with a loan-to-value ratio of 80 percent. In addition, the adjustable-rate mortgage (ARM) products are indexed to U.S. Treasury yields, and lenders are asked for both the initial coupon rate and points as well as the margin on the ARM products.
"Mortgage rates edged up to begin the year on signs of a stronger economic recovery,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “The pending home sales index inched up 0.2 percent in November, after five consecutive months of decline. The Conference Board reported that confidence among consumers rose in December, and the S&P/Case-Shiller 20-city composite house price index rose 13.6 percent over the 12 months ending in October 2013."
The survey highlights include:
- 30-year fixed-rate mortgage (FRM) averaged 4.53 percent with an average 0.8 point for the week ending Jan. 2, up from the previous week when it averaged 4.48 percent. A year ago at this time, the 30-year FRM averaged 3.34 percent;
- 15-year FRM averaged 3.55 percent with an average 0.7 point, up from the previous week when it averaged 3.52 percent. A year ago at this time, the 15-year FRM averaged 2.64 percent;
- 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.05 percent with an average 0.4 point, up from the previous week when it averaged 3.00 percent. A year ago, the 5-year ARM averaged 2.71 percent; and
- 1-year Treasury-indexed ARM averaged 2.56 percent with an average 0.5 point, unchanged from the previous week. At this time last year, the 1-year ARM averaged 2.57 percent.