Skip to main content

Mortgage Market Shrugs Off Inflation Rumors With Slight Rate Rise for the Week

NationalMortgageProfessional.com
Jun 16, 2011

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which shows fixed-rate mortgages (FRMs) changing little despite reports of recent economic inflation. After an eight-week decline, the 30-year fixed ticked up to 4.50 percent, with an average 0.7 point for the week ending June 16, 2011, up from last week when it averaged 4.49 percent. Last year at this time, the 30-year FRM averaged 4.75 percent. while the 15-year inched down again to 3.67 percent. The 15-year FRM averaged 3.67 percent this week with an average 0.7 point, down from last week when it averaged 3.68 percent. A year ago at this time, the 15-year FRM averaged 4.20 percent. "Mortgage rates were little changed this week as financial market participants shrugged off the recent inflation reports," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The core producer price index rose just 0.2 percent in May while the core consumer price index increased 0.3 percent, both near the market consensus forecast." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.27 percent this week, with an average 0.6 point, down from last week when it averaged 3.28 percent. A year ago, the five-year ARM averaged 3.89 percent. The one-year Treasury-indexed ARM averaged 2.97 percent this week with an average 0.5 point, up from last week when it averaged 2.95 percent. At this time last year, the one-year ARM averaged 3.82 percent. "Much of the run down in home mortgage debt so far has been through second mortgages, according to the Federal Reserve Board," said Nothaft. "Household mortgage balances fell by more than $930 billion between the peak set at the end of March 2008 and March of this year, of which, second mortgages accounted for $820 billion of the decline."
Published
Jun 16, 2011
Top Texas Originator Sees No Surrender To 2023

Big cities will determine the battle

Industry News
Jan 26, 2023
There’s Good & Bad News On The Horizon

There will be a real estate slump, but the big cities are coming out much better

Industry News
Jan 26, 2023
Housing Prices Across Texas Likely Hobbled In 2023

But you’re getting a lot less for $1 million

Industry News
Jan 23, 2023
UWM Adds 'Control Your Price' To 'Game On' Pricing

New program provides 125 basis points in price enhancements for loan orignators.

Industry News
Jan 11, 2023
Rocket Pro TPO Relieves Brokers Of Credit Fee Burden

Will provided free credit reports to brokers if they get their loan closed with the Detroit lender.

Industry News
Jan 10, 2023
Former Employees Sue Rocket Mortgage Over OT Pay

Claim company failed to properly calculate & pay OT for working beyond 40 hours a week.

Operations
Jan 09, 2023