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 6.04 percent with an average 0.6 point for the week ending October 23, 2008, down from last week when it averaged 6.46 percent. Last year at this time, the 30-year FRM averaged 6.33 percent.

The 15-year FRM this week averaged 5.72 percent with an average 0.6 point, down from last week when it averaged 6.14 percent. A year ago at this time, the 15-year FRM averaged 5.99 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.06 percent this week, with an average 0.6 point, down from last week when it averaged 6.14 percent. A year ago, the 5-year ARM averaged 6.03 percent.

One-year Treasury-indexed ARMs averaged 5.23 percent this week with an average 0.5 point, up from last week when it averaged 5.16 percent. At this time last year, the 1-year ARM averaged 5.66 percent.

"Long-term mortgage rates fell this week amid news of tame inflation and a weaker housing market," said Frank Nothaft, Freddie Mac vice president and chief economist. "Consumer prices were unchanged in September and core prices, which exclude food and energy products, rose by only 0.1 percentage point, all below the market consensus. On a year-over-year basis growth in core consumer prices remained at a 2.5 percent clip."

"New construction on one-family homes fell 12 percent in September to an annual rate of 544,000 homes, the lowest since February 1982. One-unit housing starts are now 70 percent below its peak set in January 2006, according to the Department of Commerce. Meanwhile, homebuilder confidence reached an all-time record low in October since the National Association of Homebuilders first began polling in January 1985."

Published: October 24, 2008

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