Fixed-Rate Mortgages Nearing the 3.80 Percent Mark
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing 30-year fixed-rate mortgages (FRMs) averaging 3.83 percent with an average 0.7 point for the week ending May 10, 2012, down from last week when it averaged 3.84 percent. Last year at this time, the 30-year FRM averaged 4.63 percent. The 30-year FRM has averaged below four percent all but one week since Dec. 8, 2011, helping to keep homebuyer affordability high. Also this week, the 15-year FRM averaged 3.05 percent with an average 0.7 point, down from last week when it averaged 3.07 percent. A year ago at this time, the 15-year FRM averaged 3.82 percent. "Following April's weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The economy added just 115,000 jobs, below the market consensus forecast and less than in March. And although the unemployment rate declined, it reflected fewer people actively seeking jobs." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent this week, with an average 0.5 point, down from last week when it averaged 2.85 percent. A year ago, the five-year ARM averaged 3.41 percent. The one-year Treasury-indexed ARM averaged 2.73 percent this week with an average 0.5 point, up from last week when it averaged 2.70 percent. At this time last year, the one-year ARM averaged 3.11 percent.