Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing the 30-year fixed-rate mortgage (FRM) at 3.79 percent, with an average 0.7 point for the week ending May 17, 2012. THis number is down 0.04 percent down from last week when it averaged 3.83 percent. Last year at this time, the 30-year FRM averaged nearly a full percentage point higher at 4.61 percent.
The 15-year FRM averaged 3.04 percent with an average 0.7 point for the week, down from last week when it averaged 3.05 percent. A year ago at this time, the 15-year FRM averaged 3.80 percent.
"The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week," said Frank Nothaft, vice president and chief economist for Freddie Mac. "For instance, industrial production rose 1.1 percent in April—the largest gain since December 2010—and consumer sentiment in May rose to its highest reading since January 2008, according to the University of Michigan."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, with an average 0.6 point, up from last week when it averaged 2.81 percent. A year ago, the five-year ARM averaged 3.48 percent. Also this week, the one-year Treasury-indexed ARM averaged 2.78 percent this week with an average 0.5 point, up from last week when it averaged 2.73 percent. At this time last year, the 1-year ARM averaged 3.15 percent.
"There was also good news in the home construction industry," said Nothaft. "Housing starts rose to an annualized rate of 717,000 homes in April, well above the market consensus forecast, and construction on one-family homes increased to its strongest pace in three months. Moreover, homebuilder confidence in May reached its highest reading since January 2008 according to the NAHB/Wells Fargo Housing Market Index."
