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According to the latest issue of HSH.com’s Market Trends Newsletter, “The all-important 30-year fixed conforming average slipped to 5.07% [last week],” a 10-week low point:

[Last] week, the overall average for 30-year fixed-rate mortgages tracked by HSH.com’s FRMI sported a decline of six basis points (.06%), ending HSH.com’s survey week at 5.34%, the lowest such average since mid-December 2009. The FRMI includes conforming, jumbo and the GSE’s “high-limit” conforming products in its calculation. The average interest rate for the FRMI’s Hybrid 5/1 ARM counterpart lost a full tenth-percentage point (.10%) during the latest survey cycle, closing the survey week at 4.48%.

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Number five on HSH.com’s 2010 Outlook — a document that explores “the 10 Most Important Factors for 2010’s Mortgage Market” — stated that “Fannie Mae and Freddie Mac will change.” That’s no longer the case…At least for right now.

Yesterday, Treasury Secretary Timothy Geithner announced that the GSEs will stay as is for 2010, and will not be reformed or restructured until some time next year:

Mortgage rates have shown some profound stability lately in the face of turbulent market conditions. According to the latest issue of HSH’s Market Trends Newsletter, “In fact, the last four weeks of averages for 30-year conforming rates all were within just a few basis points of each other, a remarkable bit of stability in a market which still faces many challenges.”

The overall average for 30-year fixed-rate mortgages tracked by HSH.com’s FRMI declined by six basis points (.06%), ending a snowy northeast week at 5.36%. The FRMI includes conforming, jumbo and the GSE’s “high-limit” conforming products in its calculation. The FRMI’s Hybrid 5/1 ARM counterpart, shed just three basis points (.03%), during the latest survey cycle, landing at 4.57% at the close of Friday’s [02/12/10] workweek.

Good morning everyone. Since there are several important developments currently underway that are likely to impact you directly, I thought I would do things a little different this morning. Instead of writing separate posts on each development, we’re going to delve a little into each. Each of the following are likely to impact not only the housing markets but the overall economy as well.

Fed Leaving the Mortgage Market?

We published some very informative and speculative posts this week.

What’s behind Fannie and Freddie’s unlimited funding?  

Can I get a tax break on my “green” home improvements?

Whether you’re interested in energy-efficient mortgages or where mortgage rates will end up in 2010, this week’s posts have something for you.

We’ve been keeping a close eye on the whole “Fannie and Freddie receive unlimited funding” thing since we first found out about it. As soon as we heard the news we knew there was more to Washington’s motive of providing the GSEs with unlimited funding than merely a way to calm the markets.

On Monday we updated our original post on the subject, adding the opinion of one former Treasury official (which coincided with ours) that the reason Fannie and Freddie were given the unlimited credit line was because in the near future their losses would add up to more than the $200 billion each were previously given.

UPDATE1: When the U.S. pledged its unwavering financial support to Fannie Mae and Freddie Mac on Christmas Eve 2009, the decision brought to light one simple fact: The losses Fannie and Freddie have sustained and will sustain in the near future, will likely cost us more than $400 million (the sum the two were previously promised to cover losses). One former general counsel at the Treasury Department seems to agree 100%:

Taxpayer losses from supporting Fannie Mae and Freddie Mac will top $400 billion, according to a former general counsel at the Treasury who is now a fellow at the American Enterprise Institute.

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Chris Thorman at www.SoftwareAdvice.com has written a great post on Fannie Mae’s recently-announced Deed for Lease (D4L) program that complements our previous post on the subject very well.

Thorman’s article does a good job at breaking down D4L using easy-to-understand language. “Own to Rent: Breaking Down Fannie Mae’s Deed for Lease Program,” covers how the program works, who is eligible, property requirements, as well as examines whether or not it makes financially to take advantage of the program.

Don’t forget to check in on our “HSH in the News 2009” page located at the top-right section of the blog. News outlets across the country seek to quote not only our mortgage rates and statistics, but they often seek our commentary and opinions on the latest financial and consumer news items.

Here’s a look at some of our more-recent mentions:

UDATE1: Fannie Mae has released the details to a program that will turn struggling homeowners into renters. The “Deed for Lease Program” (DLP) allows delinquent homeowners to rent their home for up to a year instead of being foreclosed upon.

Instructions for Borrowers