Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.72 percent with an average 0.7 point for the week ending June 10, 2010, down from last week when it averaged 4.79 percent. Last year at this time, the 30-year FRM averaged 5.59 percent. The 15-year FRM this week averaged 4.17 percent with an average 0.7 point, down from last week when it averaged 4.20 percent. A year ago at this time, the 15-year FRM averaged 5.06 percent. The 15-year FRM has not been lower since Freddie Mac started tracking the 15-year FRM in August of 1991 and sets another record low for the fourth straight week.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.92 percent this week, with an average 0.7 point, down from last week when it averaged 3.94 percent. A year ago, the five-year ARM averaged 5.17 percent.
The one-year Treasury-indexed ARM averaged 3.91 percent this week with an average 0.6 point, down from last week when it averaged 3.95 percent. At this time last year, the one-year ARM averaged 5.04 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.
“Following a relatively weak employment report, bond yields fell this week and mortgage rates followed,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Private payrolls rose by 41,000 jobs in May, less than a quarter of the market forecast consensus of an 180,000 gain. Interest rates on 30-year fixed mortgage hover near the record low set on Dec. 3, 2009 in our survey; the Primary Mortgage Market Survey began in April 1971. Meanwhile, rates on 15-year fixed mortgages set another record low for the fourth week in a row. Overall, the economy does show signs of improvement. The Federal Reserve reported in its June 9 regional economic review that the economy strengthened in all 12 of its Districts over April and May. It also noted that loan quality was stable or improving in most districts, but remained an issue for banks with large exposure to real estate.”
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