Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which found that both fixed-rate mortgage (FRM) rates eased slightly this week. The five-year hybrid ARM dropped back slightly to 4.81 percent, but the one-year ARM rates rose to 3.40 percent.
With the 30-year FRM averaging 4.81 percent with an average 0.7 point for the week, totals were down from last week when it averaged 4.83 percent. Last year at this time, the 30-year FRM averaged 5.05 percent. The 15-year FRM averaged 4.15 percent with an average 0.7 point, down from last week when it averaged 4.17 percent. A year ago at this time, the 15-year FRM averaged 4.45 percent.
“Mortgage rates were little changed this week following significant increases over the prior
several weeks," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Economic reports in December have suggested the economy began regaining momentum towards the end of the year, with consumer spending, industrial production and exports all posting solid gains. Treasury yields backed up as this stronger growth outlook caused an improvement in risk appetites and the likelihood of deflation to recede further."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.75 percent this week, with an average 0.6 point, down from last week when it averaged 3.77 percent. A year ago, the five-year ARM averaged 4.40 percent. The one-year Treasury-indexed ARM averaged 3.40 percent this week with an average 0.7 point, up from last week when it averaged 3.35 percent. At this time last year, the one-year ARM averaged 4.38 percent.
“Rates remain low, however, despite the recent rise, and are still well below where they began the year. Low mortgage rates are an important factor in housing affordability, which in October was the highest on record, according to the National Association of Realtors," said Nothaft. "These conditions are conducive to improving housing market conditions, and indeed, sales of existing single-family homes rose 6.7 percent in November to the strongest pace since June, according to the Realtors. In addition, the median sales price rose 1.2 percent over November 2009, which represented the first 12-month increase since August and largest gain since April. Finally, new construction on one-family homes in November rose to the strongest rate since April, based on figures released by the Census Bureau.”
For more information, visit www.freddiemac.com.