Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which found that once again, both fixed- and short-term mortgage rates rose this
week. This was the fourth consecutive week where fixed-rate mortgage (FRM) rates were on the rise. The 30-year FRM averaged 4.61 percent with an average 0.7 point for the week
ending Dec. 9, 2010, up from last week when it averaged 4.46 percent. Last year at this time, the 30-year FRM averaged 4.81 percent.
"After Europe made strides in its debt situation, investors left the security of U.S. Treasury debt causing bond yields to rise and mortgage rates along with them," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Interest rates for 30-year fixed mortgages are now almost a half percentage point higher than the record low set in mid-October, which for a $200,000 conventional loan amounts to $50 more in monthly payments."
The 15-year FRM averaged 3.96 percent, with an average 0.7 point, up from last week when it averaged 3.81 percent. A year ago at this time, the 15-year FRM averaged 4.32 percent.
"Housing demand appears to be picking up recently. Existing pending sales jumped 10.4 percent in October to the strongest pace since April, according to the National Association of Realtors (NAR)," said Nothaft. "More recently, mortgage applications for home purchases rose for the three consecutive weeks ending on Dec. 3rd, representing a 17.7 percent increase and the strongest pace since the week of May 7th, based on figures released by the Mortgage Bankers Association."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.60 percent this week, with an average 0.6 point, up from last week when it averaged 3.49 percent. A year ago, the five-year ARM averaged 4.26 percent. The one-year Treasury-indexed ARM averaged 3.27 percent this week with an average 0.6 point, up from
last week when it averaged 3.25 percent. At this time last year, the one-year ARM averaged 4.24 percent.
For more information, visit www.freddiemac.com.