Freddie Mac Survey Finds 0.8 Percent Drop in Rates Over Last Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which shows a slight drop of 0.8 percent in long-term fixed rates for the third consecutive week, as the 30-year fixed-rate mortgage (FRM) came in at 4.87 percent with an average 0.7 point for the week ending March 3, 2011, down from last week when it averaged 4.95 percent. At this time last year, the 30-year FRM averaged 4.97 percent. "Mortgage rates saw an overall improvement this week. Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year's high set just three weeks ago," said Frank Nothaft, vice president and chief economist, Freddie Mac. "This means that homebuyers could now expect to pay $263 less per year on a $200,000 loan." The 15-year FRM this week averaged 4.15 percent with an average 0.7 point, down from last week when it averaged 4.22 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.   The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.72 percent this week, with an average 0.6 point, down from last week when it averaged 3.8 percent. A year ago, the five-year ARM averaged 4.11 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 3.4 percent. At this time last year, the one-year ARM averaged 4.27 percent. "However, housing demand still remains weak. New home sales in January were near record lows dating back to 1963 when the data began, according to the Census Bureau," said Nothaft. "Similarly, pending sales of existing homes fell for the second consecutive month in January, according to the National Association of Realtors." For more information, visit www.freddiemac.com.