Rates Remain Below Four Percent Mark for Sixth Consecutive Week
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) for the week ending Jan. 12, 2012, showing mortgage rates easing to new all-time record lows for all products. The 30-year fixed rate mortgage (FRM) averaged 3.89 for the week, marking the sixth consecutive week the FRM has come in below the four percent mark. Last week, the FRM averaged 3.91 percent, and last year at this time, the FRM averaged 4.71 percent. This week, the 15-year FRM averaged 3.16 percent with an average 0.8 point, down from last week when it averaged 3.23 percent. A year ago at this time, the 15-year FRM averaged 4.08 percent. "Mortgage rates eased slightly this week to all-time record lows following mixed indicators in the labor market," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Although the economy added 1.6 million jobs in 2011, which was the most since 2006, the unemployment rate remained historically elevated. The 2009 to 2011 period had the highest three-year average unemployment rate since 1939 to 1941. Moreover, the Federal Reserve indicated in its Jan. 11 regional economic review that most industries saw limited permanent hiring at the end of last year." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week, with an average 0.7 point, down from last week when it averaged 2.86 percent. A year ago, the five-year ARM averaged 3.72 percent. The one-year Treasury-indexed ARM averaged 2.76 percent this week with an average 0.6 point, down from last week when it averaged 2.80 percent. At this time last year, the one-year ARM averaged 3.23 percent.