Fifteen-Year Fixed Rate Mortgage Hits Record 3.11 Percent Mark

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing that 30-year fixed-rate mortgages (FRMs) averaged 3.88 percent with an average 0.7 point for the week ending April 12, 2012, down from last week when it averaged 3.98 percent. Last year at this time, the 30-year FRM averaged 4.91 percent. The 15-year FRM this week averaged a new all-time low of 3.11 percent with an average 0.7 point, down from last week when it averaged 3.21 percent, breaking its previous low of 3.13 percent on March 8, 2012. A year ago at this time, the 15-year FRM averaged 4.13 percent. "Fixed mortgage rates eased for the third consecutive week following long-term Treasury bond yields lower after a weaker than expected employment report for March," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Although the unemployment rate fell to the lowest reading since January 2009, the overall economy added just 120,000 new jobs in March, nearly half that of the market consensus forecast. On a more positive note, the Federal Reserve reported hiring was steady, or showed a modest increase, across many of its Districts in its April 11th Beige Book of regional economic conditions." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 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 3.78 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 3.25 percent.