The US 5-Year ARM Rate Ended 2009 with a Yearly Average Below 5%
The US 5-year ARM rate increased slightly in December 2009 but ended 2009 with a yearly average well below 5%, according to the results of the Primary Mortgage Market Survey (PMMS) carried out by Freddie Mac.
In particular, the monthly average rate for 5-year adjustable-rate mortgages (ARMs) increased from 4.27% in November 2009 to 4.33% in December, representing an increase of 6 basis points. With the December results, the 2009 average rate for 5-year ARMs came at 4.75%, representing the lowest rate since 2005, the beginning year of the historical data reported from Freddie Mac for 5-year ARM rates.
The 2009 average 5-year ARM rate dropped 99 basis points compared to the rate that prevailed in 2008, when it averaged 5.74%.
The lowest monthly average 5-year ARM rate registered by the survey in 2009 was 4.27% and was the average rate for the month of November (see graph below).
The highest monthly average 5-year ARM rate registered in 2009 by the survey was 5.31% and was the average rate for the month of January. The graph below portrays the monthly average 5-year ARM rates for the period January-December 2009, as published by Freddie Mac.
