Fixed-Rates Remain Below the 3.40 Percent Mark for Second Consecutive Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates edging slightly 0.03 percent higher as the 30-year fixed-rate mortgage (FRM) averaged 3.39 percent with an average 0.7 point for the week ending Oct. 11, 2012, up slightly from last week when it averaged 3.36 percent. Last year at this time, the 30-year FRM averaged 4.12 percent. Also this week, the 15-year FRM this week averaged 2.70 percent with an average 0.6 point, up from last week when it averaged 2.69 percent. A year ago at this time, the 15-year FRM averaged 3.37 percent. "Mortgage rates were little changed this holiday week following the employment report for September," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Payroll employment increased by 114,000 workers, although manufacturing jobs dipped for the second month in a row. Employment in the prior two months was revised up 86,000 and the unemployment rate fell to 7.8 percent, marking the lowest rate since January 2009." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.73 percent this week with an average 0.6 point, up from last week when it averaged 2.72 percent. A year ago, the five-year ARM averaged 3.06 percent. The one-year Treasury-indexed ARM averaged 2.59 percent this week with an average 0.4 point, up from last week when it averaged 2.57 percent. last week. At this time last year, the one-year ARM averaged 2.90 percent.