US ARM Rates Declined for Fifth Month in a Row in November 2009
US average ARM rates declined for fifth month in a row in November 2009, according to the results of the weekly Primary Mortgage Market Surveys (PMMS) published by Freddie Mac.
In particular, the monthly average commitment rate on 5-year adjustable-rate mortgages (ARMs) decreased from 4.39% in October 2009 to 4.27% in November 2009, representing a drop of 12 basis points. This was the fifth consecutive drop since June 2009 when US 5-year ARM rates averaged 5.0%.
On a year-over-year basis the November 2009 average rate on 5-year ARMs was by 171 basis points lower than the corresponding rate that prevailed in November 2008 when it averaged 5.98%.
The average 5-year ARM rate registered in November 2009 was the lowest monthly rate recorded by the PMMS year-to-date. The highest 5-year ARM rate registered by the survey year-to-date was 5.31% and was the average rate for the month of January.
The graph below portrays the monthly average five-year ARM rates for the period January-November 2009, as published by Freddie Mac.
US Monthly Mortgage Rates on 5-Year ARMs January-November 2009
