Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78 percent with an average 0.7 point for the week ending May 27, 2010, down from last week when it averaged 4.84 percent. Last year at this time, the 30-year FRM averaged 4.91 percent. The 30-year FRM has not been lower since the week ending Dec. 3, 2009, when it averaged 4.71 percent.
The 15-year FRM this week averaged 4.21 percent with an average 0.7 point, down from last week when it averaged 4.24 percent. A year ago at this time, the 15-year FRM averaged 4.53 percent. The 15-year FRM has not been lower since Freddie Mac started tracking the 15-year FRM in August of 1991. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.97 percent this week, with an average 0.7 point, up from last week when it averaged 3.91 percent. A year ago, the five-year ARM averaged 4.82 percent.
The one-year Treasury-indexed ARM averaged 3.95 percent this week with an average 0.6 point, down from last week when it averaged four percent. At this time last year, the one-year ARM averaged 4.69 percent. The one-year ARM has not been lower since the week ending May 27, 2004 when it averaged 3.87 percent. Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
“These low rates will help to elevate home-buyer affordability and soften the effects of the sunset of the homebuyer tax credit,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The credit substantially propelled home sales, as reflected in the strength of the April existing and new home sales, which were up 7.6 percent and 14.8 percent, respectively. The latest information from Freddie Mac’s repeat-transactions home-price indexes also show some encouraging signs, with national metrics either slowing their descent or showing a modest rise, suggesting that the sharp downturn in national indexes since 2006 may be nearing an end. The S&P/Case-Shiller Index for the United States was up 2.0 percent year-over-year, and while the FHFA Purchase-Only Index and Freddie Mac's Conventional Mortgage Purchase-Only indexes showed declines of 3.1 percent and 1.1 percent, respectively, from first quarter of 2009 to first quarter of 2010, the FHFA's monthly U.S. index showed a pickup in values from February to March.”
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