Mortgage Rates End Slight Climb and Drop to an Average of 4.80 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which finds that the 30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average 0.7 point for the week ending April 21, 2011, down from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM stood at 5.07 percent. The 15-year FRM averaged 4.02 percent this week, with an average 0.7 point, down from last week when it averaged 4.13 percent. A year ago at this time, the 15-year FRM averaged 4.39 percent. "Low inflation is keeping mortgage rates at bay," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The core consumer price index rose just 0.1 percent in March, below the market consensus forecast. The 12-month growth rate in core prices was 1.2 percent, which is also rather low by historical standards." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.61 percent this week, with an average 0.6 point, down from last week when it averaged 3.78 percent. A year ago, the five-year ARM averaged 4.03 percent. The one-year Treasury-indexed ARM averaged 3.16 percent this week with an average 0.6 point, down from last week when it averaged 3.25 percent. At this time last year, the one-year ARM averaged 4.22 percent. "The housing market continues to struggle," said Nothaft. "Although housing starts and existing home sales in March were stronger than the market consensus, they were still at low levels. Moreover, homebuilders became more pessimistic in April about the near-term according to the NAHB/Wells Fargo Housing Market Index."