Fixed-Rate 30-Year Mortgages Rise Slightly to 4.23 Percent
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which found that the 30-year fixed-rate mortgage (FRM) rose slightly for the second consecutive time in six weeks to 4.23 percent with an average 0.8 point. This was up from the previous week when the FRM averaged 4.21 percent. Last year at this time, the 30-year FRM averaged 5.03 percent. The 15-year fixed-rate mortgage rate also rose slightly to 3.66 percent, with an average 0.7 point, up from last week when it averaged 3.64 percent. A year ago at this time, the 15-year FRM averaged 4.46 percent. “Mixed economic data releases left mortgage rates little changed this week," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Consumer confidence increased slightly in October, according to The Conference Board, but still remains at low levels. Based on the S&P/Case-Shiller 20-city composite index, house prices fell 0.3 percent between July and August, while the purchase-only index by the Federal Housing Finance Agency showed a 0.4 percent gain over the same period." The five-year ARM set another low, averaging 3.41 percent this week, with an average 0.6 point, down from last week when it averaged 3.45 percent. The one-year ARM tied last week’s low, averaging 3.30 percent this week with an average 0.7 point. “Historically low rates are supporting home sales and reducing the excess stock of homes available for sale," said Nothaft. "Existing home sales, including condominiums and co-ops, rose for the second consecutive month in September, up almost 18.0 percent over July’s low. Similarly, sales of new homes had back-to-back increases and were 7.7 percent above July. The inventory of new homes for sale has either stayed the same or declined every month of this year.” For more information, visit www.freddiemac.com.