Mortgage Rates Drop Slightly to 3.39 Percent for the Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates moving slightly lower while continuing to remain near their all-time lows this week amid signs of a growing economy and low inflation. The 30-year fixed-rate mortgage (FRM) averaged 3.39 percent with an average 0.7 point for the week ending Nov. 1, 2012, down from last week when it averaged 3.41 percent. Last year at this time, the 30-year FRM averaged four percent.  Also this week, the 15-year FRM averaged 2.70 percent with an average 0.7 point, down from last week when it averaged 2.72 percent. A year ago at this time, the 15-year FRM averaged 3.31 percent. "Mortgage rates remained relatively unchanged this week on signs of a growing economy and low inflation," said Frank Nothaft, vice president and chief economist of Freddie Mac. "The economy grew two percent in the third quarter with residential fixed investment contributing 0.3 percentage points to growth. The core price index of personal consumer expenditures grew 1.7 percent between September 2011 and 2012 and was within the Federal Reserve's preferred target range." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week with an average 0.6 point, down from last week when it averaged 2.75 percent. A year ago, the five-year ARM averaged 2.96 percent. The one-year Treasury-indexed ARM averaged 2.58 percent this week with an average 0.4 point, down from last week when it averaged 2.59 percent last week. At this time last year, the one-year ARM averaged 2.88 percent.