Rates Rise for Third Consecutive Week in Freddie Mac Survey
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which found that the both fixed- and shorter-term mortgage rates rose this week, the third consecutive week where fixed-rate mortgage (FRM) rates were up. The PMMS found that 30-year rates averaged 4.46 percent with an average 0.8 point for the week ending Dec. 2, 2010, up from the previous week when it averaged 4.40 percent. Last year at this time, the 30-year FRM averaged 4.71 percent. “Mortgage rates followed bond yields higher this week as recently released economic data suggest the economy may be stronger this quarter than the previous," said Frank Nothaft, vice president and chief economist with Freddie Mac. "Regional manufacturing indexes for Dallas, Chicago and Milwaukee all rose in November. In addition, the Federal Reserve noted that 10 of its 12 regions saw improvement through mid-November in its December first regional economic review. The 15-year FRM averaged 3.81 percent this week with an average 0.7 point, up from last week when it averaged 3.77 percent. A year ago at this time, the 15-year FRM averaged 4.27 percent. “House prices indices, however, are trending downwards," said Nothaft. "The 12-month growth rate in the S&P/Case-Shiller 20-city index eased from 1.7 percent in August to 0.6 percent in September. Only six of the cities had positive annual growth, compared to nine in August." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.49 percent this week, with an average 0.6 point, up from last week when it averaged 3.45 percent. A year ago, the five-year ARM averaged 4.19 percent. The one-year Treasury-indexed ARM averaged 3.25 percent this week with an average 0.6 point, up from last week when it averaged 3.23 percent. At this time last year, the 1-year ARM averaged 4.25 percent. For more information, visit www.freddiemac.com.