Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) for the week ending Dec. 1, 2011, showing the 30-year fixed-rate mortgage (FRM) averaging four percent with an average 0.7 point, up from last week when it averaged 3.98 percent. Last year at this time, the 30-year FRM averaged 4.46 percent. The 30-year fixed mortgage has averaged at or below four percent for the fifth consecutive week while the 15-year fixed has hovered around 3.30 percent. Additionally, adjustable-rate mortgages (ARMs) ticked down slightly averaging new record lows for the second straight week.
The 15-year FRM averaged 3.30 percent with an average 0.8 point, the same from last week when it averaged 3.30 percent. A year ago at this time, the 15-year FRM averaged 3.81 percent.
"This week, the Federal Reserve released its latest Beige Book review of regional economic conditions, noting that the residential real estate market generally remained sluggish through the first half of the fourth quarter but that the economy expanded at a moderate pace in 11 of its 12 Districts," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The extraordinarily low mortgage rates of the past month may provide a needed spur to housing activity."
The five-year Treasury-indexed hybrid ARM averaged 2.90 percent this week, with an average 0.6 point, down from last week when it averaged 2.91 percent. A year ago, the five-year ARM averaged 3.49 percent. The one-year Treasury-indexed ARM averaged 2.78 percent this week with an average 0.6 point, down from last week when it averaged 2.79 percent. At this time last year, the one-year ARM averaged 3.25 percent.
"Economic data released this past week included the Conference Board's consumer confidence index, which had the largest jump in November since April 2003, and the S&P/Case-Shiller 20-city composite index (seasonally adjusted), which fell for the fifth consecutive month in September to the lowest reading since April 2003," said Nothaft. "More optimistic consumers, lower house prices, and bargain mortgage rates may have contributed to the 10.4 percent jump in pending home sales in October to the strongest pace since November 2010 and may bode well for future home sales."