Freddie Mac survey finds rates remain relatively the same for the week
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.75 percent with an average 0.7 point for the week ending June 17, 2010, up from last week when it averaged 4.72 percent. Last year at this time, the 30-year FRM averaged 5.38 percent. The 15-year FRM this week averaged 4.20 percent with an average 0.7 point, up from last week when it averaged 4.17 percent. A year ago at this time, the 15-year FRM averaged 4.89 percent. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.89 percent this week, with an average 0.7 point, down from last week when it averaged 3.92 percent. A year ago, the five-year ARM averaged 4.97 percent. This is the lowest the five-year ARM has been since Freddie Mac started tracking it in January of 2005. The one-year Treasury-indexed ARM averaged 3.82 percent this week with an average 0.6 point, down from last week when it averaged 3.91 percent. At this time last year, the one-year ARM averaged 4.95 percent. The is the lowest the one-year ARM has been since the week ending May 6, 2004 when it averaged 3.76 percent. Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage. “Mortgage rates were little changed this week amid preliminary signs that the expiration of the homebuyer tax credit in April may have led to a slowdown in new construction,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Starts on single-family homes fell 17 percent to an annualized pace of 468,000 units in May from April’s 20-month high. In addition, permits on one-unit homes fell to the slowest pace since May 2009. Finally, builders became more pessimistic in their near term outlook in June, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Nonetheless, household balance sheets have been improving over the past four quarters. In aggregate, households gained $6.3 trillion in net worth in the first quarter from a year ago, according to the Federal Reserve. In addition, homeowners have regained $1.1 trillion in home equity over the same time period.” For more information, visit www.freddiemac.com.