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Fixed-Rate Mortgages Still Under Five Percent and Unchanged Over Last Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which shows mortgage rates are holding steady and remain below the five percent mark, as the 30-year fixed-rate mortgage (FRM) averaged 4.88 percent with an average 0.7 point for the week ending March 10, 2011, up from last week when rates averaged 4.87 percent. Last year at this time, the 30-year rate was at 4.95 percent.
The 15-year FRM averaged 4.15 percent, with an average 0.7 point, identical to last week when it averaged 4.15 percent. A year ago at this time, the 15-year FRM averaged 4.32 percent.
"Interest rates for 30-year fixed-rate mortgages have averaged at or below five percent in every week but one this year, contributing to record home affordability," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The National Association of Realtors (NAR) Housing Affordability Index rose to an all-time record high in January, based on figures dating back to 1971. More recently, mortgage applications jumped almost 16 percent over the week ended March 4, 2011 representing the largest percent increase since the week of June 11, 2009.”
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.73 percent this week, with an average 0.6 point, up from last week when it averaged 3.72 percent. A year ago, the five-year ARM averaged 4.05 percent. The one-year Treasury-indexed ARM averaged 3.21 percent this week with an average 0.5 point, down from last week when it averaged 3.23 percent. At this time last year, the one-year ARM averaged 4.22 percent.
“Mortgage rates held steady amid a strong employment report," said Nothaft. "The private sector added 222,000 jobs in February, the most since March 2006, while the unemployment rate fell to 8.9 percent, the lowest share since April 2009."