Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.22 percent with an average 0.6 point for the week ending Aug. 6, 2009, down from last week when it averaged 5.25 percent. Last year at this time, the 30-year FRM averaged 6.52 percent.
The 15-year FRM this week averaged 4.63 percent with an average 0.6 point, down from last week when it averaged 4.69 percent. A year ago at this time, the 15-year FRM averaged 6.10 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.73 percent this week, with an average 0.6 point, down from last week when it averaged 4.75 percent. A year ago, the five-year ARM averaged 6.05 percent.
One-year Treasury-indexed ARMs averaged 4.78 percent this week with an average 0.5 point, down from last week when it averaged 4.80 percent. At this time last year, the 1-year ARM averaged 5.22 percent. Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
“Better-than-expected economic reports helped to keep mortgage rates low this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The economy slowed by an annual rate of 1 percent in the second quarter, which was more positive than market forecasts.”
“Homebuyer demand improved as well, aided by high levels of housing affordability. The first half of this year contained the top six months with the most affordable housing conditions since the National Association of Realtors (NAR) began calculating its Housing Affordability Index in January 1971. As a result, pending existing home sales rose for five consecutive months ending in June, a trend not seen since July 2003. In June, a typical family would have devoted 15.7 percent of their gross income to mortgage principal and interest payments, the NAR explained.”
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