Short-Term Rates Pick Up on Hints of the End to Rate Cuts

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 5.98 percent with an average 0.5 point for the week ending May 22, 2008, down from last week when it averaged 6.01 percent. Last year at this time, the 30-year FRM averaged 6.37 percent.

The 15-year FRM this week averaged 5.55 percent with an average 0.6 point, down from last week when it averaged 5.60 percent. A year ago at this time, the 15-year FRM averaged 6.06 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.61 percent this week, with an average 0.6 point, up from last week when it averaged 5.57 percent. A year ago, the 5-year ARM averaged 6.02 percent.

One-year Treasury-indexed ARMs averaged 5.24 percent this week with an average 0.6 point, up from last week when it was 5.18 percent. At this time last year, the 1-year ARM averaged 5.64 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 fell slightly this week on news of both weaker industrial production in April and consumer sentiment falling in May to its lowest level since June 1980," said Frank Nothaft, Freddie Mac vice president and chief economist. "ARM rates, however, rose slightly on market forecasts that the Federal Reserve (Fed) may not pursue any more rate cuts over the near term. For instance, the federal funds futures market suggests virtually no change in monetary policy over the next few months and the Fed viewed the last rate cut to be a "close call," according to the minutes of its most recent policy Committee meeting.

"Housing woes still plague the economy. Although housing starts unexpectedly rose in April, all of the gains were in multifamily properties. New construction on one-unit homes fell to 692,000 homes (annualized), which was the least since January 1991 and almost 62 percent below the peak set in November 2005. In addition, homebuilder confidence matched an all-time record low in May."

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.

SUMMARY OF SURVEY RESULTS

Fixed-Rate Mortgages
	Average Conventional 30-Year Commitment Rate	Fees & Points	Average Conventional 15-Year Commitment Rate	Fees & Points
US	5.98	0.5	5.55	0.6
Northeast	6.01	0.3	5.59	0.4
Southeast	5.96	0.7	5.54	0.7
N. Central	5.96	0.4	5.52	0.4
Southwest	5.99	0.6	5.55	0.6
West	6.00	0.6	5.56	0.7

Five/One-Year Adjustable-Rate Mortgages
	First Commitment Rate	Fees & Points	Margin
US	5.61	0.6	2.76
Northeast	5.63	0.5	2.79
Southeast	5.61	0.8	2.76
N. Central	5.59	0.4	2.75
Southwest	5.64	0.7	2.78
West	5.62	0.7	2.76

One-Year Adjustable-Rate Mortgages
	First Commitment Rate	Fees & Points	Margin
US	5.24	0.6	2.75
Northeast	5.29	0.4	2.75
Southeast	5.21	0.8	2.75
N. Central	5.28	0.1	2.72
Southwest	5.28	0.7	2.81
West	5.19	0.9	2.75

Freddie Mac defines its regions as follows:

Northeast: NY, NJ, PA, DE, MD, DC, VA, WV, ME, NH, VT, MA, RI, CT Southeast: NC, SC, TN, KY, GA, AL, FL, PR, VI, MS North Central: OH, IN, IL, MI, WI, MN, IA, ND, SD Southwest: TX, LA, NM, OK, AR, MO, KS, CO, NE, WY West: CA, AZ, NV, OR, WA, UT, ID, MT, HI, AK, GU

Freddie Mac's Primary Mortgage Market Survey (PMMS) is for informational purposes only and Freddie Mac is not responsible for business decisions made based on the reported results of the PMMS. Freddie Mac may change the methodology used to conduct the PMMS survey at any time and without notice.

DEFINITIONS

Commitment Rate is the interest rate a lender would charge to lend mortgage money to a qualified borrower exclusive of the fees and points required by the lender. This commitment rate applies only to conventional financing on conforming mortgages with loan-to-value rates of 80 percent or less.

ARM Index - is the One-year Treasury

Loan to Value Ratio (LTV) is the ratio of the loan amount of a mortgage loan to the lower of the appraisal value or purchase price of the property securing the loan.

Origination Fees and Discount Points are the total charged by the lender at settlement. One point equals one percent of the loan amount.

Margin is a fixed amount added to the underlying index to establish the fully indexed rate for an ARM.

Weighted Averages for the Primary Mortgage Market Survey have been adjusted as of October 18, 2007. The new weights use the dollar volume of conventional mortgage originations within the 1-unit Freddie Mac loan limit as reported under Home Mortgage Disclosure Act (HMDA) for 2006. The weights are listed in the table below.

Freddie Mac Region	PMMS Weights
Northeast	23.9
Southeast	20.4
North Central	14.3
Southwest	11.0
West	30.3

PRIMARY MORTGAGE MARKET SURVEY RESULTS May 22, 2008

30-Year Fixed Rate Mortgages
	US	NE	SE	NC	SW	W
Average	5.98	6.01	5.96	5.96	5.99	6.00
Fees & Points	0.5	0.3	0.7	0.4	0.6	0.6

15-Year Fixed Rate Mortgages
	US	NE	SE	NC	SW	W
Average	5.55	5.59	5.54	5.52	5.55	5.56
Fees & Points	0.6	0.4	0.7	0.4	0.6	0.7

5/1-Year Adjustable Rate Mortgages
	US	NE	SE	NC	SW	W
Average	5.61	5.63	5.61	5.59	5.64	5.62
Fees & Points	0.6	0.5	0.8	0.4	0.7	0.7

1-Year Adjustable Rate Mortgages
	US	NE	SE	NC	SW	W
Average	5.24	5.29	5.21	5.28	5.28	5.19
Fees & Points	0.6	0.4	0.8	0.1	0.7	0.9

The National Mortgage Rate Snapshot
	One Year Ago				One Week Ago
	30-YR	15-YR	5/1-YR	1-YR ARM	30-YR	15-YR	5/1-YR	1-YR ARM
Average	6.37	6.06	6.02	5.64	6.01	5.60	5.57	5.18
Fees & Points	0.4	0.4	0.5	0.6	0.6	0.5	0.6	0.7