Fixed-Rate Mortgages Close Out 2011 at 3.95 Percent
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed rate mortgages (FRMs) finishing the year near their all-time historic lows helping to keep homebuyer affordability high, averaging 3.95 percent for the week ending Dec. 29. 2011. The 30-year FRM has been at or below four percent for the past nine consecutive weeks and only twice in 2011 did it average above the five percent mark. Last year at this time, the 30-year FRM averaged 4.86 percent. The 15-year FRM this week averaged 3.24 percent with an average 0.8 point, up from last week when it averaged 3.21 percent. A year ago at this time, the 15-year FRM averaged 4.20 percent. "Mortgage rates ended the year hovering near historic lows in an already affordable housing market," said Frank Nothaft, vice president and chief economist, Freddie Mac. "For instance, the seasonally-adjusted S&P/Case-Shiller 20-City Composite home price index in October was the lowest seen since March 2003. The largest hit areas were Las Vegas with the lowest reading since January 1997 and Atlanta which was since June 1998. It's not surprising then that over five percent of households in December plan to purchase a home over the next six months, the highest share since May, according to The Conference Board." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.88 percent this week, with an average 0.6 point, up from last week when it averaged 2.85 percent. A year ago, the five-year ARM averaged 3.77 percent. The one-year Treasury-indexed ARM averaged 2.78 percent this week with an average 0.6 point, up from last week when it averaged 2.77 percent. At this time last year, the one-year ARM averaged 3.26 percent.