Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) which has found lower mortgage rates for both long- and short-term mortgages, with the 30-year fixed-rate mortgage (FRM) reaching a four-week low of 4.71 percent with an average 0.8 point for the week ending Jan. 13, 2011. The 30-year rate is down from last week when it averaged 4.77 percent. Last year at this time, the 30-year FRM averaged 5.06 percent. The 15-year FRM this week averaged 4.08 percent with an average 0.7 point, down from last week when it averaged 4.13 percent. A year ago at this time, the 15-year FRM averaged 4.45 percent.
“Bond yields drifted lower following the release of the December employment report, which was weaker than the market consensus forecast and implied that the labor market is still in a sluggish recovery," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Fixed mortgage rates followed bond yields lower for a second consecutive week, bringing them to a four-week low."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.72 percent this week, with an average 0.7 point, down from last week when it averaged 3.75 percent. A year ago, the five-year ARM averaged 4.32 percent. The one-year Treasury-indexed ARM averaged 3.23 percent this week with an average 0.6 point, down from last week when it averaged 3.24 percent. At this time last year, the one-year ARM averaged 4.39 percent.
“In its Jan. 12 regional economic review, the Federal Reserve noted that activity in residential real estate and new home construction remained slow across all Districts over the last two months of 2010 due to concerns about the pace of economic recovery, especially in employment," said Nothaft. "In addition, the outlooks for residential real estate were mixed, with contacts in most Districts described as expecting continued weak conditions.”
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