Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.59 percent with an average 0.7 point for the week ending June 11, 2009, up from last week when it averaged 5.29 percent. Last year at this time, the 30-year FRM averaged 6.32 percent. The last time the 30-year FRM was higher was the week ending November 26, 2008, when it averaged 5.97 percent.
The 15-year FRM this week averaged 5.06 percent with an average 0.7 point, up from last week when it averaged 4.79 percent. A year ago at this time, the 15-year FRM averaged 5.93 percent. The last time the 15-year FRM was higher was the week ending Dec. 11, 2008, when it averaged 5.20 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.17 percent this week, with an average 0.6 point, up from last week when it averaged 4.85 percent. A year ago, the five-year ARM averaged 5.51 percent. The last time the five-year ARM was higher was the week ending Feb. 12, 2009, when it averaged 5.23 percent.
One-year Treasury-indexed ARMs averaged 5.04 percent this week with an average 0.7 point, up from last week when it averaged 4.81 percent. At this time last year, the one-year ARM averaged 5.09 percent. The last time the one-year ARM was higher was the week ending Dec. 11, 2008, when it averaged 5.09 percent. Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
“Mortgage rates followed the increase in bond yields this week as the May employment report showed that the economy lost fewer jobs than the market consensus had expected,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Revisions to the jobs report for earlier months also showed the job loss was not as large as early estimates had indicated: March and April figures were revised to add an additional 82,000 jobs to the work force. As a result, federal funds futures rose after the report, signaling that the market expects the Federal Reserve may raise its benchmark rate sooner rather than later.
“Higher mortgage rates are slowing refinancing activity but not demand for home purchases. Over the three-weeks ending June 5th, interest rates for 30-year fixed-rate mortgages rose nearly one-half of a percentage point. As a result, conventional mortgage applications for refinance fell each week during this period while applications for home purchases consecutively rose, according to the Mortgage Bankers Association.”
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