Mortgage Rates Drop Below Four Percent Once Again to 3.98 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing the average fixed-rate mortgage (FRM) changing little and remaining near their historic lows, while adjustable-rate mortgages averaged new record lows, as the 30-year FRM averaged 3.98 percent with an average 0.7 point for the week ending Nov. 23, 2011, down from last week when it averaged four percent. Last year at this time, the 30-year FRM averaged 4.40 percent. The 15-year FRM this week averaged 3.30 percent with an average 0.7 point, down from last week when it averaged 3.31 percent. A year ago at this time, the 15-year FRM averaged 3.77 percent. "Mortgage rates eased slightly this week with fixed-rate loans hovering above all-time lows and ARMs reaching a new nadir," said Frank Nothaft, VP and chief economist for Freddie Mac. "The high-degree of homebuyer affordability in recent months translated into a 1.4 percent pickup in existing home sales during October, according to the National Association of Realtors (NAR). The NAR also reported that contract cancellations were up in October as well, which restrained sales from achieving a stronger rebound." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.91 percent this week, with an average 0.6 point, down from last week when it averaged 2.97 percent. A year ago, the five-year ARM averaged 3.45 percent. The one-year Treasury-indexed ARM averaged 2.79 percent this week with an average 0.6 point, down from last week when it averaged 2.98 percent. At this time last year, the one-year ARM averaged 3.23 percent. "The Bureau of Economic Analysis revised third quarter GDP growth downward from an initial estimate of 2.5 percent to two percent," said Nothadft. "In addition, the Federal Reserve announced weaker business activity for November in its Philadelphia and Chicago districts."