Fixed-Rate Mortgages Rise to 4.60 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) where the 30-year fixed-rate mortgage (FRM) averaged 4.60 percent with an average 0.7 point for the week ending July 7, 2011, up from last week when it averaged 4.51 percent. Last year at this time, the 30-year FRM averaged 4.57 percent. The 15-year FRM averaged 3.75 percent for the week with an average 0.7 point, up from last week when it averaged 3.69 percent. A year ago at this time, the 15-year FRM averaged 4.07 percent. "Mortgage rates followed Treasury yields higher over the holiday week but remain quite affordable by historical standards," said Frank Nothaft, vice president and chief economist for Freddie Mac. "For instance, interest rates on all mortgages outstanding in the first quarter of this year averaged just under six percent. With today's rates, these homeowners who have the ability to refinance could shave $169 per month in interest payments on a $200,000, 30-year fixed mortgage." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.30 percent this week, with an average 0.6 point, up from last week when it averaged 3.22 percent. A year ago, the 5-year ARM averaged 3.75 percent. The one-year Treasury-indexed ARM averaged 3.01 percent this week with an average 0.6 point, up from last week when it averaged 2.97 percent. At this time last year, the 1-year ARM averaged 3.75 percent.