Rise in Consumer Confidence Drops Mortgage Rates to Record Low of 3.34 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates dipping to new all-time record lows, as the 30-year fixed-rate mortgage (FRM) averaged 3.34 percent with an average 0.7 point for the week ending Nov. 15, 2012, down from last week when it averaged 3.40 percent. Last year at this time, the 30-year FRM averaged four percent. The previous record low for the 30-year FRM was set the week of Oct. 4, when it averaged 3.36 percent. The 15-year FRM this week averaged 2.65 percent with an average 0.7 point, down from last week when it averaged 2.69 percent. A year ago at this time, the 15-year FRM averaged 3.31 percent.  "Fixed mortgage rates eased this week to record lows on indicators of higher consumer confidence and lower wholesale prices," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Consumer sentiment rose in November to the highest reading since July 2007 according to the University of Michigan. Meanwhile, the core producer price index fell 0.2 percent in October." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week with an average 0.6 point, up from last week when it averaged 2.73 percent. A year ago, the five-year ARM averaged 2.97 percent. The one-year Treasury-indexed ARM averaged 2.55 percent this week with an average 0.3 point, down from last week when it averaged 2.59 percent. At this time last year, the one-year ARM averaged 2.98 percent.