Mortgage Rates See Slight Weekly Decline to 3.55 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates declining or remaining the same from the previous week, as the 30-year fixed-rate mortgage (FRM) averaged 3.55 percent with an average 0.7 point for the week ending Sept. 6, 2012, down from last week when it averaged 3.59 percent. Last year at this time, the 30-year FRM averaged 4.12 percent. Also this week, the 15-year FRM this week averaged 2.86 percent with an average 0.6 point, the same as last week. A year ago at this time, the 15-year FRM averaged 3.33 percent. "Mortgage rates were little changed over the holiday week amid mixed economic data releases," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Although consumer spending rose 0.4 percent in July, representing the largest gain in five months, the core price index was unchanged suggesting little threat of inflation. Consumer confidence picked up slightly in August according to the University of Michigan, but remained below this year's peak in May. And the manufacturing industry contracted for the third consecutive month in August." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.75 percent this week with an average 0.7 point, down from last week when it averaged 2.78 percent. A year ago, the five-year ARM averaged 2.96 percent. The one-year Treasury-indexed ARM averaged 2.61 percent this week with an average 0.4 point, down from last week when it averaged 2.63 percent. At this time last year, the one-year ARM averaged 2.84 percent.