Freddie Mac PMMS: Most mortgage rates drift lower on hopes of market recovery in late '08MortgagePress.comFreddie Mac, Primary Mortgage Market Survey, ARMs, fixed-rate mortgage
Freddie Mac has today released the results of its Primary
Mortgage Market Survey (PMMS) in which the 30-year, fixed-rate
mortgage (FRM) averaged 6.01 percent with an average 0.6 point for
the week ending May 15, 2008, down from last week when it averaged
6.05 percent. Last year at this time, the 30-year FRM averaged 6.15
percent.
The 15-year FRM this week averaged 5.60 percent with an average
0.5 point, unchanged from last week when it averaged 5.60 percent.
A year ago at this time, the 15-year FRM averaged 5.87 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
(ARMs) averaged 5.57 percent this week, with an average 0.6 point,
down from last week when it averaged 5.67 percent. A year ago, the
five-year ARM averaged 5.89 percent.
One-year Treasury-indexed ARMs averaged 5.18 percent this week
with an average 0.7 point, down from last week when it was 5.29
percent. At this time last year, the 1-year ARM averaged 5.48
percent. Average commitment rates should be reported along with
average fees and points to reflect the total cost of obtaining the
mortgage.
"Recent remarks by Federal Reserve (Fed) officials, which partly
bolstered optimism that financial markets will recover later this
year, helped mortgage rates ease up a little this week," said Frank
Nothaft, Freddie Mac vice president and chief economist. "Fed
Chairman Bernanke indicated in a speech on May 13th that the Fed
stands ready to continue to add liquidity to the markets. On the
same day, San Francisco Fed bank president Janet Yellen added that
she anticipates inflation will slow as commodity prices level off
in the second half of the year.
"Despite the bleak housing market, there was positive news on
the overall state of the economy. Retail sales (excluding
automobiles) rose 0.5 percent in April, over twice that of market
forecasts, and there was a significant upward revision in Marchs
figures as well. Also, the consumer price index for April rose less
than expected, allaying some market concerns of inflation taking
hold."
For more information, visit www.freddiemac.com.
