Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which shows fixed-rate mortgages (FRMs) holding steady amid mixed economic reports and some signs of improvement in the housing market at 4.51 percent with an average 0.7 point for the week ending June 30, 2011. The 30-year rate is up from slightly from last week when it averaged 4.50 percent, while last year at this time, it averaged 4.58 percent.
The 15-year FRM this week averaged 3.69 percent with an average 0.7 point, as it did last week when it also averaged 3.69 percent. Last year at this time, the 15-year FRM averaged 4.04 percent.
"Interest rates on 30-year fixed mortgages hovered around 4.5 percent for the fourth consecutive week following mixed reports on the strength of the economy," said Frank Nothaft, vice president and chief economist of Freddie Mac. "First quarter economic growth was revised up in the final estimate, but growth in consumer spending stagnated in May while April's figure was revised downward; consumer expenditures account for roughly two-thirds of the nation's gross domestic product."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.22 percent this week, with an average 0.6 point, down from last week when it averaged 3.25 percent. A year ago, the five-year ARM averaged 3.79 percent. The one-year Treasury-indexed ARM averaged 2.97 percent this week with an average 0.6 point, down from last week when it averaged 2.99 percent. At this time last year, the one-year ARM averaged 3.80 percent.
"Meanwhile, there were some signs of improvement in the housing market. In April, the S&P/Case-Shiller 20-city composite home price index rose 0.7 percent, representing the first monthly increase since July 2010," said Nothaft. "However, much of the improvement reflected the seasonal increase in homebuying over the spring-summer period. Pending existing home sales rebounded in May, exhibiting the largest monthly increase since November 2010."
