Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates pulling back down slightly as the 30-year fixed-rate mortgage (FRM) averaged 3.59 percent with an average 0.6 point for the week ending Aug. 30, 2012, down from last week when it averaged 3.66 percent. Last year at this time, the 30-year FRM averaged 4.22 percent. This week, the 15-year FRM averaged 2.86 percent with an average 0.6 point, down from last week when it averaged 2.89 percent. A year ago at this time, the 15-year FRM averaged 3.39 percent.
"Treasury bond yields fell, allowing mortgage rates to follow, after the release of the July 31st and Aug. 1st minutes of the Federal Reserve's monetary policy committee," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Committee members agreed that economic activity had decelerated more in recent months than they had anticipated at their last meeting in June. Some members even saw room for additional stimulus fairly soon if needed."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.78 percent this week with an average 0.6 point, down from last week when it averaged 2.80 percent. A year ago, the five-year ARM averaged 2.96 percent. The one-year Treasury-indexed ARM averaged 2.63 percent this week with an average 0.4 point, down from last week when it averaged 2.66 percent. At this time last year, the one-year ARM averaged 2.89 percent.
"Nonetheless, the housing market continued to show improvement over the past few months," said Nothaft. "New home sales rose 3.6 percent in July matching May's pace as the strongest month since April 2010. Similarly, pending existing home sales also rose in July to its highest rate since April 2010. And, the S&P/Case-Shiller National Home Price Index rose 1.2 percent between the second quarter of 2011 and 2012, reflecting the first annual increase since the second quarter of 2010."
