MORTGAGE RATES DOWN FOR THE THIRD CONSECUTIVE WEEK

30-Year AND 15-Year Fixed Rate Mortgages At Lowest Level Since July 2005

January 17, 2008

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 5.69 percent with an average 0.5 point for the week ending January 17, 2008, down from last week when it averaged 5.87 percent as well. Last year at this time, the 30-year FRM averaged 6.23 percent.

The 15-year FRM this week averaged 5.21 percent with an average 0.4 point, down from last week when it averaged 5.43 percent. A year ago at this time, the 15-year FRM averaged 5.98 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.40 percent this week, with an average 0.6 point, down from last week when it averaged 5.63 percent. A year ago, the 5-year ARM averaged 6.04 percent.

One-year Treasury-indexed ARMs averaged 5.26 percent this week with an average 0.6 point, down from last week when it was 5.37 percent. At this time last year, the 1-year ARM averaged 5.51 percent.

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

"The latest retail sales report indicated that shoppers scaled back spending in December, as retail sales declined by 0.4 percent from November's level," said Frank Nothaft, Freddie Mac vice president and chief economist. "Particularly weak were sales of building materials, garden equipment and supply stores, which fell by 2.9 percent from the previous month. The declines aggravated concerns about the well being of the economy and exerted downward pressure on mortgage rates.

"Mortgage rates moved down across loan products for the third consecutive week. Average rates on 30-year fixed-rate mortgages (FRMs) and 15-year FRMs are at their lowest since July 2005. The results from this week's survey mark the first time in seven years that the average rate on the 15-year FRM is lower than the average rate on 1-year adjustable-rate mortgages (ARMs)."

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.

Reprinted from: http://www.freddiemac.com/dlink/html/PMMS/display/PMMSOutputWk.jsp?week=03&ending=20080117