Mortgage Rates Remain a Stable 4.10 Percent
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing the 30-year fixed-rate mortgage (FRM) averaging 4.10 percent with an average 0.8 point for the week ending Oct. 27, 2011, down from last week when it averaged 4.11 percent. Last year at this time, the 30-year FRM averaged 4.23 percent. The 15-year FRM averaged 3.38 percent with an average 0.7 point, the same as last week when it averaged 3.38 percent. A year ago at this time, the 15-year FRM averaged 3.66 percent. Fixed mortgage rates remain near their 60-year lows. "Fixed mortgage rates followed other long-term interest rates and showed little change, on average, from the prior week," Frank Nothaft, vice president and chief economist for Freddie Mac. "The latest monthly housing market indicators were mixed, with consumer confidence soft, house prices largely flat, and new home sales up from very low levels." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.08 percent this week, with an average 0.5 point, up from last week when it also averaged 3.01 percent. A year ago, the five-year ARM averaged 3.41 percent. The one-year Treasury-indexed ARM averaged 2.90 percent this week with an average 0.6 point, down from last week when it averaged 2.94 percent. At this time last year, the one-year ARM averaged 3.30 percent. "Consumer confidence fell below the market consensus forecast in October to the lowest reading since March 2009, according to The Conference Board," said Nothaft. "The FHFA Purchase-Only House Price Index for the U.S. declined 0.1 percent in August on a seasonally adjusted basis, while the S&P/Case-Shiller 20-city Composite home price index rose 0.2 percent (not seasonally adjusted) between July and August, with one-half of the cities registering a dip in values. Finally, new home sales increased 5.7 percent in September to the strongest pace since April."