Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) for the week ending Jan. 5, showing average fixed-rate mortgages (FRMs) starting the year at or near their all-time lows. The 30-year FRM averaged 3.91 percent with an average 0.8 point, down from the previous week when it averaged 3.95 percent. At this time last year, the 30-year FRM averaged 4.77 percent. The 30-year FRM matched its all-time record low, amid recent data showing signs of improvement in the housing market and manufacturing industry. This marks the fifth consecutive week that the 30-year FRM has averaged below the four percent mark.
The 15-year FRM this week averaged 3.23 percent with an average 0.8 point, down from last week when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 4.13 percent.
"Fixed mortgage rates started the year a little lower this week just as recent data reports indicate the housing market and manufacturing industry are showing signs of improvement," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Pending existing home sales in November jumped 7.3 percent, nearly five times greater than the market consensus forecast, to its strongest pace since April 2010."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.86 percent this week, with an average 0.7 point, down from last week when it averaged 2.88 percent. A year ago, the five-year ARM averaged 3.75 percent. The one-year Treasury-indexed ARM averaged 2.80 percent this week with an average 0.6 point, up from last week when it averaged 2.78 percent. At this time last year, the one-year ARM averaged 3.24 percent.
"Construction spending rose 1.2 percent in November, supported by the residential sector which exhibited its fourth consecutive monthly increase," said Nothaft. "Similarly, manufacturing expanded in December at the fastest pace in six months."
