Mortgage rates dip even further this week
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), concluding fixed-rate mortgages reached another low, while the five-year adjustable rate mortgage (ARM) remained tied at its low for this survey. The 30-year fixed-rate survey began in 1971, the 15-year began in 1991, and the five-year adjustable in 2005. “Investors in long-term bonds appear very confident that inflation will remain in check, and as a result long-term fixed mortgage rates have continued to fall," Amy Crews Cutts, deputy chief economist, Freddie Mac. "This week marks the ninth straight week in the Primary Mortgage Market Survey that 30-year-fixed mortgage rates have met or set a new record low." According to the PMMS, 30-year fixed-rate mortgages (FRM) averaged 4.42 percent, with an average 0.7 point for the week ending Aug. 19, 2010, down from last week when it averaged 4.44 percent. Last year at this time, the 30-year FRM averaged 5.12 percent. This week, the 15-year FRM averaged a record low of 3.90 percent, with an average 0.6 point, down from last week when it averaged 3.92 percent. A year ago at this time, the 15-year FRM averaged 4.56 percent. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.56 percent this week, with an average 0.6 point, unchanged from last week when it also averaged 3.56 percent. A year ago, the five-year ARM averaged 4.57 percent. The one-year Treasury-indexed ARM averaged 3.53 percent this week, with an average 0.7 point, unchanged from last week when it also averaged 3.53 percent. At this time last year, the one-year ARM averaged 4.69 percent. “This week’s release of the Consumer Price Index indicates that current inflation is very low," said Cutts. "The 12-month growth in the core consumer price index has held at only 0.9 percent for four straight months ending in July. The last time price growth was this low was the year ending January 1966. The housing market appears to be in a lull following the expiration of the homebuyer tax credits. Single-family starts fell for the third straight month in July to an annual pace of 432,000 homes, the fewest since May 2009. In addition, homebuilder confidence fell for the third consecutive month in August to the lowest since March 2009, according to the NAHB/Wells Fargo Housing Opportunity Index. Even confidence among realtors was at a 16-month low in June, according to the National Association of Realtors.” For more information, visit www.freddiemac.com.