Mortgage Rates Hold Steady at Record Low of 3.66 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing the 30-year fixed-rate mortgage (FRM) averaging 3.66 percent with an average 0.7 point for the week ending June 28, 2012, unchanged from last week. Last year at this time, the 30-year FRM averaged 4.51 percent. Also this week, the 15-year FRM averaged 2.94 percent with an average 0.7 point, down from last week when it averaged 2.95 percent. A year ago at this time, the 15-year FRM averaged 3.69 percent.  "Mortgage rates were virtually unchanged this week hovering at or near record lows and should further help to support a recovering housing market," said Frank Nothaft, vice president and chief economist of Freddie Mac. "Both the S&P/Case Shiller 20-city composite and the Federal Housing Finance Agency's house price indexes showed over a 0.5 percent monthly increase in April. Meanwhile, pending existing home sales rebounded in May by 5.9 percent to match a two year high and new home sales jumped 7.6 percent to its fastest pace since April 2010." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.79 percent this week, with an average 0.6 point, up from last week when it averaged 2.77. A year ago, the five-year ARM averaged 3.22 percent. The one-year Treasury-indexed ARM averaged 2.74 percent this week with an average 0.4 point, the same as last week. At this time last year, the one-year ARM averaged 2.97 percent.