Rates Remain Steady at 3.55 Percent for the Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates holding steady from the previous week, as the 30-year fixed-rate mortgage (FRM) averaged 3.55 percent with an average 0.6 point for the week ending Sept. 13, 2012. Last year at this time, the 30-year FRM averaged 4.09 percent. Also this week, the 15-year FRM averaged 2.85 percent with an average 0.6 point, down from last week when it averaged 2.86 percent. A year ago at this time, the 15-year FRM averaged 3.30 percent. "Despite a lackluster August employment report, Treasury bond yields and mortgage rates were little changed this week with the financial markets speculating on further monetary stimulus from the Federal Reserve," said Frank Nothaft, vice president and chief economist of Freddie Mac. "The economy added 96,000 net new workers in August, while revisions subtracted 41,000 from the prior two months; manufacturers cut 15,000 employees in August which represented the largest decline since August 2010. Meanwhile, approximately 368,000 people left the workforce thereby lowering the unemployment rate to 8.1 percent." Also this week, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.72 percent with an average 0.6 point, down from last week when it averaged 2.75 percent. A year ago, the five-year ARM averaged 2.99 percent. The one-year Treasury-indexed ARM averaged 2.61 percent this week with an average 0.4 point, the same as last week. At this time last year, the one-year ARM averaged 2.81 percent.