Freddie Mac PMMS, or Primary Mortgage Market Survey, is a weekly survey of mortgage lenders capturing rates on conventional fixed and adjustable loans across the United States. The data reflects lender quotes for completed transactions, providing a benchmark for how market pricing evolves week to week.
Market participants rely on Freddie Mac PMMS to track trends in 30 year fixed, 15 year fixed, and other conventional loan programs, making it a core reference for originators, investors, and policymakers assessing mortgage performance.
| Week | 30 Year Fixed Rate | 15 Year Fixed Rate | 5 1 Year Treasury Index | Points |
|---|---|---|---|---|
| 2024-06-06 | 6.78 | 6.25 | 5.38 | 0.6 |
| 2024-06-13 | 6.65 | 6.18 | 5.45 | 0.6 |
| 2024-06-20 | 6.60 | 6.15 | 5.42 | 0.5 |
| 2024-06-27 | 6.55 | 6.10 | 5.38 | 0.5 |
Market Structure Of The Primary Mortgage Market
Understanding the structure of the primary mortgage market clarifies how lenders formulate quotes that feed into the Freddie Mac PMMS survey. Conforming loans sold to Fannie Mae and Freddie Mac establish baseline pricing, while investor demand and agency securitization influence weekly movements across product types.
Key Participants And Roles
- Banks and credit unions originate loans and report actual lock commitments and final rates to Freddie Mac.
- Aggregators package loans into pools that become agency mortgage-backed securities.
- Investment funds and foreign holders influence long term bond demand and yield levels.
- Government entities set policy frameworks that indirectly shape lender hedging and pricing behavior.
Pricing Dynamics And Index Drivers
Pricing in the PMMS reflects the interaction between long term Treasury yields, mortgage backed securities spreads, and lender competition. Movements in the 10 year Treasury, prepayment risk expectations, and funding costs for pipelines all feed into the rates that appear in the survey.
Typical Weekly Factors
- Scheduled and unscheduled mortgage prepayment speeds alter supply and demand for MBS.
- Economic data, employment reports, and inflation prints shift expectations for Federal Reserve policy.
- Seasonal flows, such as refinancing waves or purchase demand surges, create periodic patterns.
- Liquidity conditions in the broader repo and Treasury markets can create short term pricing dislocations.
Strategic Use For Originators And Investors
Originators use the Freddie Mac PMMS to benchmark their pricing against peers and to time hedging activities in the secondary market. Investors rely on the same data to evaluate valuation relative to benchmarks and to anticipate spread changes in mortgage pools.
Operational Applications
- Compare offered rates against the survey to assess competitiveness.
- Model yield impact of changes in lock and float strategies.
- Guide issuance calendars for pipeline hedging based on rate trends.
- Inform investor positioning by analyzing coupon distribution and average effective rates.
Monitoring The Long Term Trajectory
Tracking the Freddie Mac PMMS over multiple months reveals structural shifts in mortgage pricing, spread behavior relative to Treasuries, and the persistence of specific product trends across economic cycles.
- Use weekly data to identify directional trends rather than reacting to single week moves.
- Correlate rate movements with macroeconomic releases and Federal Communication Committee signals.
- Compare coupon distributions and average points to understand cost of capital for borrowers.
- Align hedging calendars with survey patterns to manage basis risk between lock and hedge execution.
FAQ
Reader questions
How frequently is Freddie Mac PMMS data collected and published?
The survey is conducted weekly on Wednesday, with rates based on transactions completed the previous week and published early the following week.
What loan programs are included in the Freddie Mac PMMS each week?
Each week, Freddie Mac reports the 30 year fixed, 15 year fixed, and one year Treasury index products, capturing rates, points, and par yields across conventional first lien loans.
Can Freddie Mac PMMS be used to predict mortgage rates for the coming month?
While the survey shows recent trends, it reflects current market conditions and should not be relied on as a predictive tool, because many macro and policy variables can shift pricing quickly.
Why do rates quoted by lenders sometimes differ from the PMMS survey averages?
Lender quotes incorporate credit risk, lock length, retail fees, and pipeline hedging decisions, so individual offers may vary above or below the survey averages for the same product.