Mortgage Rates Continue to Climb


McLean, VA – December 16, 2010 – (RealEstateRama) — Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which found that both fixed- and short-term mortgage rates continued to rise this week. This was the fifth week in a row where fixed-rate mortgage rates were up.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.83 percent with an average 0.7 point for the week ending December 16, 2010, up from last week when it averaged 4.61 percent. Last year at this time, the 30-year FRM averaged 4.94 percent.
  • 15-year FRM this week averaged 4.17 percent with an average 0.7 point, up from last week when it averaged 3.96 percent. A year ago at this time, the 15-year FRM averaged 4.38 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.77 percent this week, with an average 0.7 point, up from last week when it averaged 3.60 percent. A year ago, the 5-year ARM averaged 4.37 percent.
  • 1-year Treasury-indexed ARM averaged 3.35 percent this week with an average 0.7 point, up from last week when it averaged 3.27 percent. At this time last year, the 1-year ARM averaged 4.34 percent.

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


Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

  • “Market concerns over stronger economic growth that, in the near term, could lead to an increase in inflation have sparked a rise in bond yields and mortgage rates have followed. For instance, the growth in retail sales excluding automobiles in November was twice that of the market consensus forecast. Industrial production showed the biggest gain in November since July, according to the Federal Reserve Board . And consumer sentiment, as measured by the Thomson Reuters/University of Michigan index, rose to a six-month high in December. As a result, interest rates for 30-year fixed mortgages this week were the highest since the week of May 20th of this year.”

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

Summary of Survey Results

Fixed-Rate Mortgages
US 4.83 0.7 4.17 0.7
Northeast 4.83 0.6 4.22 0.6
Southeast 4.82 0.7 4.18 0.8
N. Central 4.82 0.6 4.14 0.6
Southwest 4.84 0.7 4.17 0.8
West 4.82 0.8 4.15 0.9
Five/One-Year Adjustable-Rate Mortgages
US 3.77 0.7 2.74
Northeast 3.84 0.6 2.76
Southeast 3.54 0.6 2.75
N. Central 4.06 0.4 2.73
Southwest 3.65 0.8 2.77
West 3.69 0.8 2.73
One-Year Adjustable-Rate Mortgages
US 3.35 0.7 2.76
Northeast 3.33 0.6 2.79
Southeast 3.18 0.7 2.75
N. Central 3.71 0.4 2.75
Southwest 3.35 0.8 2.77
West 3.25 0.8 2.75

Freddie Mac defines its regions as follows:

Northeast: NY, NJ, PA, DE, MD, DC, VA, WV, ME, NH, VT, MA, RI, CT
Southeast: NC, SC, TN, KY, GA, AL, FL, MS, PR, VI
North Central: OH, IN, IL, MI, WI, MN, IA, ND, SD
Southwest: TX, LA, NM, OK, AR, MO, KS, CO, NE, WY
West: CA, AZ, NV, OR, WA, UT, ID, MT, HI, AK, GU

Freddie Mac’s Primary Mortgage Market Survey (PMMS) is for informational purposes only and Freddie Mac is not responsible for business decisions made based on the reported results of the PMMS. In general, the data presented were calculated from information collected Monday through Wednesday of the same week that the PMMS is released and may not reflect mortgage rates, fees or points currently available from any lender. Freddie Mac may change the methodology used to conduct the PMMS at any time and without notice.


Commitment Rate is the interest rate a lender would charge to lend mortgage money to a qualified borrower exclusive of the fees and points required by the lender. This commitment rate applies only to conventional financing on conforming mortgages with loan-to-value rates of 80 percent or less.

ARM Index is the one-year Treasury

Loan to Value Ratio (LTV) is the ratio of the loan amount of a mortgage loan to the lower of the appraisal value or purchase price of the property securing the loan.

Origination Fees and Discount Points are the total charged by the lender at settlement. One point equals one percent of the loan amount.

Margin is a fixed amount added to the underlying index to establish the fully indexed rate for an ARM.

Weighted Averages for the Primary Mortgage Market Survey have been adjusted as of October 28, 2010. The new weights use the dollar volume of conventional first-lien mortgage originations within the 1-unit Freddie Mac loan limit as reported under the Home Mortgage Disclosure Act (HMDA) for 2008. The weights are listed in the table below.

Freddie Mac Region PMMS Weights




North Central






Primary Mortgage Market Survey Results
December 16, 2010

30-Year Fixed Rate Mortgages
Average 4.83 4.83 4.82 4.82 4.84 4.82
Fees & Points 0.7 0.6 0.7 0.6 0.7 0.8
15-Year Fixed Rate Mortgages
Average 4.17 4.22 4.18 4.14 4.17 4.15
Fees & Points 0.7 0.6 0.8 0.6 0.8 0.9
5/1-Year Adjustable Rate Mortgages
Average 3.77 3.84 3.54 4.06 3.65 3.69
Fees & Points 0.7 0.6 0.6 0.4 0.8 0.8
Margin 2.74 2.76 2.75 2.73 2.77 2.73
1-Year Adjustable Rate Mortgages
Average 3.35 3.33 3.18 3.71 3.35 3.25
Fees & Points 0.7 0.6 0.7 0.4 0.8 0.8
Margin 2.76 2.79 2.75 2.75 2.77 2.75
The National Mortgage Rate Snapshot
Average 4.94 4.38 4.37 4.34 4.61 3.96 3.60 3.27
Fees & Points 0.7 0.6 0.6 0.5 0.7 0.7 0.6 0.6
Margin N/A N/A 2.74 2.75 N/A N/A 2.75 2.77


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