Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which showed fixed-rate mortgages declining for the seventh consecutive week to new lows as the 30-year fixed-rate mortgage (FRM) averaged 4.55 percent, with an average 0.6 point and the 15-year FRM averaged 3.74 percent, with an average 0.7 point. Last week, the 30-year FRM averaged 4.60 percent and last year at this time, the 30-year FRM averaged 4.79 percent. Last week, the 15-year FRM averaged 3.78 percent, and just one year ago, the 15-year FRM averaged 4.20 percent.
"Fixed mortgage rates followed U.S. Treasury yields lower this week amid financial market concerns that the current lull in the economy is continuing," said Frank Nothaft, vice president and chief economist for Freddie Mac. "First quarter growth in consumer spending was revised downward by half of a percentage point to 2.2 percent, according to the Bureau of Economic Activity, consumer confidence in May was weaker than the market consensus forecast, and the manufacturing industry slowed for the third straight month in May."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.41 percent this week, with an average 0.6 point, the same from last week when it averaged 3.41 percent. A year ago, the five-year ARM averaged 3.94 percent. The one-year Treasury-indexed ARM averaged 3.13 percent this week with an average 0.6 point, up from last week when it averaged 3.11 percent. At this time last year, the one-year ARM averaged 3.95 percent.
"The housing market is showing strain as well. The S&P/Case-Shiller National Home Price Index fell 5.1 percent between the first quarters of 2010 and 2011, representing the largest annual decline since the third quarter of 2009," said Nothaft. "In addition, the index of pending existing home sales dropped 11.6 percent from March to April, led by the Midwest and South regions where the tornados and flooding occurred."