Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which shows slower economic activity pushing fixed-rate mortgages slightly lower for the sixth consecutive week. The 30-year averaged 4.60 percent, with an average of 0.7 points, down from last week when it averaged 4.61 percent. Last year at this time, the 30-year fixed-rate mortgage (FRM) averaged 4.84 percent.
The 15-year FRM averaged 3.78 percent this week with an average 0.7 point, down from last week when it averaged 3.80 percent. A year ago at this time, the 15-year FRM averaged 4.21 percent.
"Fixed mortgage rates eased slightly for the sixth consecutive week amid reports of slower economic activity," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The index of leading indicators fell 0.3 percent in April and represented the first monthly decline since June 2010. In addition, the Federal Reserve banks reported less business and manufacturing activity in Philadelphia, Chicago and Richmond."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.41 percent this week, with an average 0.5 point, down from last week when it averaged 3.48 percent. A year ago, the five-year ARM averaged 3.97 percent. The one-year Treasury-indexed ARM averaged 3.11 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 3.95 percent.
"U.S. house prices indexes may be nearing a bottom soon. On a national basis, prices fell 0.3 percent between February and March, which was the smallest decline since November 2009, according to the Federal Housing Finance Agency," said Nothaft. "In addition, four of the nine Census Regions exhibited positive growth, compared to none in February. Separately, the Mortgage Bankers Association reported a further reduction in the serious delinquency rate (90 or more days plus foreclosures) in the first quarter, which stood at the lowest reading since the second quarter of 2009."