Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.79 percent with an average 0.8 point for the week ending June 3, 2010, up slightly from last week when it averaged 4.78 percent. Last year at this time, the 30-year FRM averaged 5.29 percent.
The 15-year FRM this week averaged 4.20 percent with an average 0.7 point, down slightly from last week when it averaged 4.21 percent. A year ago at this time, the 15-year FRM averaged 4.79 percent. The 15-year FRM has not been lower since Freddie Mac started tracking the 15-year FRM in August of 1991 and breaks last week’s record low.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.94 percent this week, with an average 0.7 point, down from last week when it averaged 3.97 percent. A year ago, the five-year ARM averaged 4.85 percent. The one-year Treasury-indexed ARM averaged 3.95 percent this week with an average 0.7 point, unchanged from last week when it averaged 3.95 percent. At this time last year, the one-year ARM averaged 4.81 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.
“The economy grew at a slower rate than originally reported in the first three months of the year, according to the Bureau of Economic Analysis, which suggests inflation will remain tame in the near term,” said Frank Nothaft, Freddie Mac vice president and chief economist. “As a result, mortgage rates held at historic levels this week. In fact, rates on 15-year fixed rate mortgages set another record low for the third week in a row. There are also signs that credit conditions may be improving. The number of homeowners with private mortgage insurance who became current on their mortgages outnumbered those who defaulted for the third month in a row in April, according to data compiled by the Mortgage Insurance Companies of America.”
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