Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which found that the 30-year fixed-rate mortgage (FRM) rate dropped yet again to break the survey’s all-time low at 4.27 percent with an average 0.8 point for the week, as did the 15-year fixed-rate at 3.72 percent with an average 0.7 point. The five-year ARM also set an all-time survey low at 3.47 percent this week, with an average 0.6 point.
“The 12-month growth rate in the core price index for personal consumption, which the Federal Reserve closely tracks, has been drifting lower over the past six months ending in August and suggests inflation is running at a tepid pace at best," said Frank Nothaft, vice president and chief economist for Freddie Mac. "This allowed mortgage rates to ease to new or near record lows this week."
The 30-year FRM averaged 4.27 percent, with an average 0.8 point for the week ending Oct. 7, 2010, down from last week when it averaged 4.32 percent. Last year at this time, the 30-year FRM averaged 4.87 percent. The 15-year FRM this week averaged a record low of 3.72 percent with an average 0.7 point, down from last week when it averaged 3.75 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.47 percent this week, with an average 0.6 point, down from last week when it averaged 3.52 percent. A year ago, the five-
year ARM averaged 4.35 percent. The one-year Treasury-indexed ARM averaged 3.4 percent this week, with an average 0.7 point, down from last week when it averaged 3.48 percent. At this time last year, the one-year ARM averaged 4.53 percent.
“Housing affordability increased for the second month in a row in August to tie April’s level,
according to the National Association of Realtors (NAR)," said Nothaft. "As a result, pending existing home sales also rose for the second consecutive month in August to the strongest pace in four months, the NAR also reported. Furthermore, since the end of August, mortgage applications for home purchases were up over 14 percent for the week ended Oct. 1.”
For more information, visit www.freddiemac.com.