Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which shows mortgage rates drifting lower with the 30-year fixed-rate mortgage matching the yearly low of 4.71 percent, and the 15-year fixed hitting a new yearly low of 3.89 percent. The 30-year fixed-rate mortgage (FRM), which averaged 4.71 percent with an average 0.7 point for the week ending May 5, 2011, was down from last week when it averaged 4.78 percent. Last year at this time, the 30-year FRM stood at five percent even.
The 15-year FRM averaged 3.89 percent this week with an average 0.7 point, down from last week when it averaged 3.97 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent.
"Weaker economic data reports reduced Treasury bond yields and allowed mortgage rates to drift lower for the third consecutive week," said Frank Nothaft, vice president and chief economist, Freddie Mac. "For instance, real economic growth in the first quarter fell short of the market consensus forecast and represented the slowest pace since the second quarter of 2010. In addition, both the manufacturing and service sectors exhibited growth at a slower rate in April."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.47 percent this week, with an average 0.6 point, down from last week when it averaged 3.51 percent. A year ago, the five-year ARM averaged 3.97 percent. The one-year Treasury-indexed ARM averaged 3.14 percent this week with an average 0.5 point, down from last week when it averaged 3.15 percent. At this time last year, the one-year ARM averaged 4.07 percent.
"Data reports on the housing market, on the other hand, were a little more uplifting," said Nothaft. "The National Association of Realtors reported pending home sales rose in March for the second month in a row to the highest index reading since November 2010. Also, the Federal Reserve reported credit standards among commercial banks for prime mortgages were unchanged on net in the second quarter of the year, following two quarters of tightening."