Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which found that the 30-year fixed-rate mortgage (FRM) and the 15-year (FRM) set new records for all-time lows. The 30-year FRM averaged 4.17 percent with an average 0.8 point for the week ending Nov. 11, 2010, down from last week when it averaged 4.24 percent. Last year at this time, the 30-year FRM stood at 4.91 percent. The 15-year FRM averaged 3.57 percent with an average 0.8 point, down from last week when it averaged 3.63 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent.
“Following the Federal Reserve (Fed) Nov. 3 policy announcement that it plans to purchase up to $600 billion in government securities, Treasury bond yields initially fell and then gradually rose again," said Frank Nothaft, vice president and chief economist, Freddie Mac. "This allowed mortgage rates to fall to record levels this week."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.25 percent this week, with an average 0.7 point, down from last week when it averaged 3.39 percent. A year ago, the 5-year ARM averaged 4.29 percent. The one-year Treasury-indexed ARM averaged 3.26 percent this week with an average 0.7 point, unchanged from last week when it also averaged 3.26 percent. At this time last year, the one-year ARM averaged 4.46 percent.
“Despite historically low mortgage rates, however, the housing recovery continues to be slow owing in part to household job uncertainty and tight credit conditions," said Nothaft. "The unemployment rate has remained at 9.5 percent or higher for the past 15 months, while commercial banks tightened lending standards in 16 of the last 17 quarters, according to the Fed’s Senior Loan Officer Opinion Survey.”
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