Fixed Rate Mortgages Begin to Climb

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates ending their six-week streak of record-setting lows, as the 30-year fixed-rate mortgage (FRM) averaged 3.71 percent with an average 0.7 point for the week ending June 14, 2012, up from last week when it averaged 3.67 percent. Last year at this time, the 30-year FRM averaged 4.50 percent. Also this week, the 15-year FRM averaged 2.98 percent with an average 0.7 point, up from last week when it averaged 2.94 percent. A year ago at this time, the 15-year FRM averaged 3.67 percent. "Fixed mortgage rates edged up slightly from record lows during a mild week of economic data releases," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The Federal Reserve Board reported that household net worth rose by $2 trillion to $62.9 trillion over the first three months of 2012 primarily due to increases in stock markets. However, this is still well below the peak of $67.5 trillion set in the third quarter of 2007. Nonetheless, homeowners saw an aggregate $372 billion rise in property values over the first three months of this year." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent this week, with an average 0.6 point, down from last week when it averaged 2.84. A year ago, the five-year ARM averaged 3.27 percent. The one-year Treasury-indexed ARM averaged 2.78 percent this week with an average 0.5 point, down from last week when it averaged 2.79 percent. At this time last year, the one-year ARM averaged 2.97 percent.