Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) showing mixed results for both long- and short-term fixed-rate mortgages (FRM), with the 30-year rising slightly to 4.74 percent, with an average 0.8 point for the week, up from last week when it averaged 4.71 percent. and the 15-year falling just as slightly. Last year at this time, the 30-year FRM averaged 4.99 percent.
The 15-year FRM this week averaged 4.05 percent with an average 0.8 point, down from last week when it averaged 4.08 percent. A year ago at this time, the 15-year FRM averaged 4.40 percent.
“Mortgage rates were little changed during the holiday week amid reports that inflation remains tame," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Both the December core producer price index and consumer price index matched the market consensus. Compared to December 2009, core consumer prices rose at a 0.8 percent rate, the smallest yearly increase since records began in 1958."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.69 percent this week, with an average 0.7 point, down from last week when it averaged 3.72 percent. A year ago, the five-year ARM averaged 4.27 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 one-year ARM averaged 4.32 percent.
“The housing construction market, however, still remains weak," said Nothaft. "The Commerce Department reported that new building of one-family homes fell by 9 percent in December, led by a 38 percent drop in the Midwest region. Moreover, homebuilder confidence remained the same in January according to the NAHB/Wells Fargo Housing Market Index, but was below the market consensus forecast.”
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