Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average mortgage rates easing amid worsening economic indicators, as the 30-year fixed-rate mortgage (FRM) averaged 3.66 percent with an average 0.7 point for the week ending June 21, 2012, down from last week when it averaged 3.71 percent. Last year at this time, the 30-year FRM averaged 4.50 percent. Also this week, the 15-year FRM averaged 2.95 percent with an average 0.6 point, down from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 3.69 percent.
"Treasury bond yields eased somewhat this week on some worsening economic indicators bringing mortgage rates back into record low territory," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Industrial production fell in two of the last three months ending in May, and below the expected market consensus forecast."
This week, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.77 percent, with an average 0.6 point, down from last week when it averaged 2.80. A year ago, the five-year ARM averaged 3.25 percent.
"Consumer sentiment fell in June to its lowest level this year, according to the University of Michigan survey," said Nothaft. "In its June 20th monetary policy announcement, the Federal Reserve also noted growth in employment has slowed in recent months and household spending appears to be rising at a somewhat slower pace."
The one-year Treasury-indexed ARM averaged 2.74 percent this week with an average 0.5 point, down from last week when it averaged 2.78 percent. At this time last year, the one-year ARM averaged 2.99 percent.
"There were also some positive indicators on the housing market," said Nothaft. "Construction on one-family homes rose for the third consecutive month in May to an annualized pace of 516,000. Furthermore, homebuilder confidence rose in June to its highest reading in over five years."