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Fixed-Rates Rise Slightly Over Last Week's Totals to 4.24 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which found that the 30-year fixed-rate mortgage (FRM) rate rose slightly for the third consecutive week averaging 4.24 percent with an average 0.8 point for the week ending Nov. 4, 2010. This was up up slightly from last week when it averaged 4.23 percent, while last year at this time, the 30-year FRM averaged 4.98 percent.
“With little sign of inflation to push up long-term interest rates, fixed mortgage rates held relatively steady this week, while ARM rates hit new all-time record lows," said Frank Nothaft, Freddie Mac vice president and chief economist. "The core price index for personal expenditures, a gauge closely followed by the Federal Reserve (Fed), rose 1.1 percent over the 12 months ending in September and represented the smallest increase since September 2001. In its Nov. 3rd monetary policy committee statement, the Fed affirmed that measures of underlying inflation are somewhat low, relative to levels that the committee judges to be consistent, over the longer run, with its dual mandate.”
The 15-year FRM averaged 3.63 percent, with an average 0.7 point, down from last week when it averaged 3.66 percent. A year ago at this time, the 15-year FRM averaged 4.40 percent. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.39 percent this week, with an average 0.6 point, down from last week when it averaged 3.41 percent. A year ago, the five-year ARM averaged 4.35 percent. The five-year ARM has not been lower since Freddie Mac started tracking it in January 2005. The one-year Treasury-indexed ARM averaged 3.26 percent this week with an average 0.7 point, down from last week when it averaged 3.30 percent. At this time last year, the one-year ARM averaged 4.47 percent. The one-year ARM sets another survey low this week.
For more information, visit www.freddiemac.com.
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