Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which shows long- and short-term rates rising slightly this week. The 30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average 0.7 point for the week ending Jan. 27, 2011, up from last week when it averaged 4.74 percent. Last year at this time, the 30-year FRM averaged 4.98 percent.
The 15-year FRM averaged 4.09 percent this week with an average 0.7 point, up from last week when it averaged 4.05 percent. A year ago at this time, the 15-year FRM averaged 4.39 percent.
“Mortgage rates followed bond yields a little higher this week amid positive data reports from the Conference Board that suggest the economy is strengthening," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The index of leading indicators rose one percent in December, nearly twice that of the market consensus forecast and represented the sixth consecutive monthly increase, according to the Board. They also reported a stronger gain in consumer confidence for January, rising to an eight-month high. In addition,
the share of households who said jobs were plentiful rose to the highest level since May 2009."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.70 percent this week, with an average 0.7 point, up from last week when it averaged 3.69 percent. A year ago, the five-year ARM averaged 4.25 percent. The one-year Treasury-indexed ARM averaged 3.26 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 4.29
“Consumer demand in the housing market is also showing some positive gains," said Nothaft. "Sales of existing homes rose in December to the strongest pace since May and sales of new homes jumped to the highest since April. At their current sales rate, the expected time on the market fell from 9.5 to 8.1 months for existing houses and fell from 8.4 to 6.9 months for new homes.”
For more information, visit www.freddiemac.com.