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Long- and Short-Term Rates All Lower Than Same Time Last Year

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 5.88 percent with an average 0.4 point for the week ending April 10, 2008, unchanged from last week when it averaged 5.88 percent. Last year at this time, the 30-year FRM averaged 6.22 percent.

The 15-year FRM this week averaged 5.42 percent with an average 0.4 point, unchanged from last week when it averaged 5.42 percent. A year ago at this time, the 15-year FRM averaged 5.90 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.56 percent this week, with an average 0.6 point, down from last week when it averaged 5.59 percent. A year ago, the 5-year ARM averaged 5.93 percent.

One-year Treasury-indexed ARMs averaged 5.18 percent this week with an average 0.7 point, down from last week when it was 5.19 percent. At this time last year, the 1-year ARM averaged 5.47 percent.

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

"Once again, mortgage rates held relatively steady this week amid release of subdued economic data," said Frank Nothaft, Freddie Mac vice president and chief economist. "For example, pending existing home sales hit the lowest value since its introduction in January 2001, presaging additional weakness in single-family home sales over the upcoming months. Further, the economy lost 80,000 jobs in March, more than the market had anticipated, and the prior two months were revised downward as well.

"Meanwhile, house sales prices have fallen in most metropolitan areas, although there have been price gains in some areas. Just over half of the 150 large cities across the nation experienced negative annual house price growth in 2007, according the National Association of Realtors. The largest yearly drop of 18.8 percent occurred in Lansing, MI, while Cumberland, MD, experienced the strongest growth at 19.0 percent."

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

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 6.03 percent with an average 0.3 point for the week ending April 24, 2008, up from last week when it averaged 5.88 percent. Last year at this time, the 30-year FRM averaged 6.16 percent.

The 15-year FRM this week averaged 5.62 percent with an average 0.3 point, up from last week when it averaged 5.40 percent. A year ago at this time, the 15-year FRM averaged 5.87 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.68 percent this week, with an average 0.5 point, up from last week when it averaged 5.48 percent. A year ago, the 5-year ARM averaged 5.88 percent.

One-year Treasury-indexed ARMs averaged 5.29 percent this week with an average 0.5 point, up from last week when it was 5.10 percent. At this time last year, the 1-year ARM averaged 5.43 percent

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

"Average rates on mortgages increased across the board this last week as the most recent economic data raised inflationary concerns in the capital markets," said Frank Nothaft, Freddie Mac vice president and chief economist. "For example, the Producer Price Index – a measure of wholesale inflation – increased 1.1 percent in March, nearly double the consensus expectations.

"March's index of leading indicators showed a tepid increase of 0.1 percent, after five consecutive months of decline. As a result, trading of federal funds futures contracts implied a reduced likelihood of a substantial rate cut at the next Federal Open Market Committee meeting."

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters

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 5.88 percent with an average 0.4 point for the week ending April 17, 2008, unchanged from last week when it averaged 5.88 percent. Last year at this time, the 30-year FRM averaged 6.17 percent.

The 15-year FRM this week averaged 5.40 percent with an average 0.5 point, down from last week when it averaged 5.42 percent. A year ago at this time, the 15-year FRM averaged 5.89 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.48 percent this week, with an average 0.6 point, down from last week when it averaged 5.56 percent. A year ago, the 5-year ARM averaged 5.92 percent.

One-year Treasury-indexed ARMs averaged 5.10 percent this week with an average 0.6 point, down from last week when it was 5.18 percent. At this time last year, the 1-year ARM averaged 5.45 percent.

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

"Interest rates for fixed-rate mortgages held relatively steady for a second week, while ARM rates continued to decline amid market speculation that the Federal Reserve (Fed) may cut rates again at its upcoming Committee meeting," said Frank Nothaft, Freddie Mac vice president and chief economist. "March's housing starts were the lowest since March 1991 and consumer sentiment in April fell to a 26-year low while homebuilder confidence remains near record lows. Currently, the federal funds future contracts suggest nearly a 100-percent probability that the Fed will cut rates at the end of this month.

"In its current regional review released on April 16th the Fed noted 'reports on real estate and construction were generally anemic for the residential sector' and 'economic conditions have weakened since its last report.' In addition, San Francisco Fed Bank President suggested, 'the economy has all but stalled and could even contract over the first half of the year' in a speech the same day and that the downside risks to growth are significant."

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

• 67 percent think it is harder for first-time home buyers than it was five years ago.
• 60 percent say they will delay buying a home for two years.
• 11 percent are certain or very likely to buy soon.
• 40 percent believe housing prices will rise soon
• 35 percent think the prices of homes in their neighborhood are about right
• 50 percent of home owners in the Northeast say houses are still overpriced,
• 10 percent of those in the Midwest think homes are underpriced.

KIRKLAND, Wash. (April 4, 2008) – Stable housing prices and strong real estate fundamentals are creating an attractive market for buyers, according to officials from the Northwest Multiple Listing Service. Commenting on just-released figures for activity for the month of March, MLS director Matt Deasy noted prices have been stable for six months and conditions have changed to a buyer’s market.

Abundant supply and a slower pace of sales are among factors favoring buyers. Brokers added 13,274 new listings of single family homes and condominiums during March. With those additions, there were 46,358 active listings in the NWMLS market area, which covers 19 counties. That inventory is about 34 percent larger than a year ago, when there were 34,463 active listings.

Seattle differs from many U.S. cities, Deasy emphasized, citing “more moderate price appreciation, fewer subprime loans, fewer foreclosures, a strong local economy and geographical and land use issues that make supply more limited.”

Prices have been stable for six months. “The year over year price decrease the press is reporting is old news,” Deasy suggested, noting that price correction happened in August and September of 2007.

MLS figures show the median price of a single family home in King County has fluctuated by only $4,050 over the past six months. The median price for a single family home that sold in King County last month was $439,900. That’s down about 3.3 percent from a year ago, but up $10,000 (2.3 percent) from February. Last month’s median selling price in King County reversed a downward or flat trend that started in July. For the MLS area overall, prices have fluctuated during the past six months:

Pending sales of single family homes and condominiums (combined) in the MLS system topped the 6,000 mark for the first time since October. Brokers notched 6,040 pending sales (offers made and accepted, but not yet closed) last month, improving on February’s figure of 5,563 transactions. Compared to the same month a year ago, the volume was down about 35 percent.

"The current market offers great opportunities for first time buyers,” said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “Home values in our area are still holding strong, yet there is less competition for homes, so buyers can afford to be more selective and less aggressive,” he added.

Continued low interest rates combined with new government-backed loans are providing first time buyers with more options for reliable mortgage products, according to Scott. “Prices are predicted to increase in the coming years due to population growth, a strong local economy, and the highly anticipated impact of Generation Y -- many of whom will soon be entering the housing market," he commented.

“Gen Y” and other first-time buyers, along with empty-nesters (all among market segments that are prime prospects for condominiums) currently have an unprecedented selection across a wide price spectrum.

According to NWMLS figures for March, there were 7,708 condominiums offered for sale at month end, about 64 percent more than a year ago. Despite plentiful inventory, prices have been trending upward since October. At that time the median sales price area-wide was $259,950. For last month’s sales, the median price climbed to $263,000. That’s up nearly 4.4 percent from the year-ago median selling price of $252,000.

In King County, the median price for a condo that sold last month was $294,000. That compares to the year-ago figure of $281,000 for a 4.6 percent increase.

NWMLS director Dick Beeson believes the local market has “reached bottom – or pretty darn close.” Even though inventory continues to grow, Beeson acknowledged, “so does optimism among buyers, sellers and agents.”

Beeson, the broker/owner of Windermere Commencement Associates in Tacoma, points to the pace of pending sales in Pierce County as a positive sign. The number of pending sales in the first quarter of 2008 increased at a faster pace (53 percent) than first quarter of 2007 (45 percent), he noted.

Renewed interest in higher end properties is also notable, according to Beeson. This bodes well for properties at or below median prices, he suggested. “Trickle down or up really works in real estate.”

Despite some challenges with credit markets that make it difficult to qualify some buyers, Beeson said there is “vigor and energy in the local markets that we have not seen in more than six months.”