Mortgage Rates Take Slight Dip to 4.77 Percent to Start the New Year
Freddie Mac has released the results of its first Primary Mortgage Market Survey (PMMS) of 2011. The survey results showed lower mortgage rates for both long- and short-term rates, as the 30-year fixed-rate mortgage (FRM) averaged 4.77 percent with an average 0.8 point for the week ending Jan. 6, 2011, down from last week when it averaged 4.86 percent. Last year at this time, the 30-year FRM averaged 5.09 percent. The 15-year FRM averaged 4.13 percent with an average 0.8 point, down from last week when it averaged 4.20 percent. A year ago at this time, the 15-year FRM averaged 4.50 percent. “Mortgage rates began the new year a little lower this week and remained below those at the start of 2010, which should help aid the recovery in the housing market," said Frank Nothaft, vice president and chief economist of Freddie Mac. “Low mortgage rates are an important factor in housing affordability, which in November was the highest since records began in 1971, according to the National Association of Realtors (NAR). Not surprisingly, the Realtors also reported that pending existing home sales rose for the second consecutive month in November to the strongest pace since April when the homebuyer tax credit expired. More recently, mortgage applications for home purchases at the end of 2010 were roughly running at the same rate as the beginning of the year, according to the Mortgage Bankers Association.” The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.75 percent this week, with an average 0.7 point, down from last week when it averaged 3.77 percent. A year ago, the five- year ARM averaged 4.44 percent. The one-year Treasury-indexed ARM averaged 3.24 percent this week with an average 0.6 point, down from last week when it averaged 3.26 percent. At this time last year, the one-year ARM averaged 4.31 percent. For more information, visit www.freddiemac.com.