Rates Inch Slightly Upward But Hold Under the Four Percent Mark

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing the 30-year fixed-rate mortgage (FRM) averaging 3.95 percent with an average 0.8 point for the week ending Feb. 23, 2012, up from last week when it also averaged 3.87 percent. Last year at this time, the 30-year FRM averaged 4.95 percent. The 15-year FRM averaged 3.19 percent for the week, with an average 0.8 point, up from last week when it also averaged 3.16 percent. A year ago at this time, the 15-year FRM averaged 4.22 percent. "New data releases this week suggest the housing market is continuing to gradually improve" said Frank Nothaft, vice president and chief economist for Freddie Mac. "Loans that were seriously delinquent (90 days or more past due plus the foreclosure inventory) fell to 5.3 percent of prime mortgages at the end of 2011, representing the lowest quarterly share since the start of 2009, according to the Mortgage Bankers Association." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent this week, with an average 0.7 point, down from last week when it averaged 2.82 percent. A year ago, the five-year ARM averaged 3.80 percent. The one-year Treasury-indexed ARM averaged 2.73 percent this week with an average 0.6 point, down from last week when it averaged 2.84 percent. At this time last year, the one-year ARM averaged 3.40 percent. "The Census Bureau reported new residential construction starts in January outpaced the market consensus forecast, led by condominiums and apartment buildings, and December's figures had upward revisions," said Nothaft. "Finally, existing home sales were at the strongest pace in January since May 2010, according to the National Association of Realtors."