Mortgage Rates Drop to 3.90 Percent for the Week
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing 30-year fixed-rate mortgages (FRMs) averaging 3.90 percent with an average 0.8 point for the week ending March 1, 2012, down from last week when it also averaged 3.95 percent. Last year at this time, the 30-year FRM averaged 4.87 percent. The 15-year FRM averaged 3.17 percent with an average 0.8 point, down from last week when it averaged 3.19 percent. A year ago at this time, the 15-year FRM averaged 4.15 percent. "Fixed mortgage rates bottomed out in January and February of this year which is helping spur the housing market," said Frank Nothaft, vice president and chief economist, Freddie Mac. "For instance, pending existing home sales rose in January to its strongest pace since April 2010 and sales figures for December saw upward revisions. In addition, the Federal Reserve noted in its Feb. 29th regional economic review (or Beige Book) that residential real estate activity increased modestly in most of its Districts over the course of January and early February, with several reports of increased home sales." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, with an average 0.7 point, up from last week when it averaged 2.80 percent. A year ago, the five-year ARM averaged 3.72 percent. The one-year Treasury-indexed ARM averaged 2.72 percent this week with an average 0.6 point, down from last week when it averaged 2.73 percent. At this time last year, the one-year ARM averaged 3.23 percent.