Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing mortgage rates following long-term bond yields lower amid weaker than expected jobs gains and an increase in the unemployment rate. This week, the 30-year fixed-rate mortgage (FRM) averaged 4.51 percent with an average 0.7 point for the week ending July 14, 2011, down from last week when it averaged 4.60 percent. Last year at this time, the 30-year FRM averaged 4.57 percent.
The 15-year FRM this week averaged 3.65 percent with an average 0.6 point, down from last week when it averaged 3.75 percent. A year ago at this time, the 15-year FRM averaged 4.06 percent.
"Long-term bond yields and mortgage rates fell this week following a weak employment report," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The economy added 18,000 jobs in June, well below the market consensus forecast, and the unemployment rate rose to 9.2 percent, the highest since December 2010. In addition, employee wages stagnated. These factors may lead to less consumer spending, which in turn, reduces the threat of inflation in the near term."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.29 percent this week, with an average 0.6 point, down from last week when it averaged 3.30 percent. A year ago, the five-year ARM averaged 3.85 percent. The one-year Treasury-indexed ARM averaged 2.95 percent this week with an average 0.5 point, down from last week when it averaged 3.01 percent. At this time last year, the one-year ARM averaged 3.74 percent.