30-Year Rates Are Lowest In More Than Two Years

McLean, VA –Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.10 percent with an average 0.5 point for the week ending November 29, 2007, down from last week when it averaged 6.20 percent as well. Last year at this time, the 30-year FRM averaged 6.14 percent. The 30-year FRM has not been lower since the week ending October 13, 2005, when it averaged 6.03 percent.
“Interest rates for U.S. Treasury securities have been drifting lower this month over market concerns that the housing slump and stress in the credit markets could slow future economic growth,” said Frank Nothaft, Freddie Mac vice president and chief economist. “As a result, interest rates for fixed-rate mortgages had room to slip lower this week. In addition to these concerns, the Federal Reserve also noted in its November 28th Beige Book that the glut of available homes continued, keeping downward pressure on prices and construction activity.
“Add to this the S&P/Case-Shiller® 20-composite index showing house prices falling 4.95 percent in the 12-months ending September, with 15 of the metropolitan areas showing annual declines and the overall picture does, indeed, appear glum with no immediate relief in sight.”

-November 29, 2007 www.FreddieMac.com