Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which shows a slight drop in long-term fixed rates this week as the 30-year fixed-rate mortgage (FRM) averaged five percent, with an average 0.7 point for the week ending Feb. 17, 2011, down from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 4.93 percent. The 15-year FRM this week averaged 4.27 percent with an average 0.7 point, down from last week when it averaged 4.29 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.
“Fixed mortgage rates eased slightly this week and continue to be very affordable," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Prior to 2009, interest rates for 30-year fixed-rate mortgages had never been at 5 percent since our survey began in April 1971. In both 1981 and 1982, the rates were over three times as high as they are today."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87 percent this week, with an average 0.6 point, down from last week when it averaged 3.92 percent. A year ago, the five-year ARM averaged 4.12 percent. The one-year Treasury-indexed ARM averaged 3.39 percent this week with an average 0.6 point, up from last week when it averaged 3.35 percent. At this time last year, the one-year ARM averaged 4.23 percent.
“The housing market is struggling to regain traction despite still historically low rates. New construction on one-family homes dipped slightly in January to an annualized pace of 413,000 units, which was the fewest number since May 2009," said Nothaft. "In addition, homebuilder confidence didn’t improve for the third consecutive month in February and remains near record lows, according the NAHB/Wells Fargo Housing Market Index.”
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