Four No More: Mortgage Rates Dip Back Below the Four Percent Mark

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.99 percent with an average 0.7 point for the week ending March 29, 2012, down from last week when it averaged 4.08 percent. Last year at this time, the 30-year FRM averaged 4.86 percent. The 15-year FRM averaged 3.23 percent with an average 0.8 point, down from last week when it averaged 3.30 percent. At this time in 2011, the 15-year FRM averaged 4.09 percent. "Mortgage rates slid this week amid weaker housing economic indicators," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The S&P/Case Shiller 20-City Composite home price index slid in January to its lowest reading since December 2002. In addition, new home sales declined 0.5 percent in February, below the market consensus of an increase, and pending existing home sales also declined for the month." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90 percent this week, with an average 0.8 point, down from last week when it averaged 2.96 percent. A year ago, the five-year ARM averaged 3.70 percent. The one-year Treasury-indexed ARM averaged 2.78 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 3.26 percent.