Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates little changed and remaining near their record lows helping to keep homebuyer affordability high and attractive to those looking to refinance. The 30-year fixed-rate mortgage (FRM) averaged 3.34 percent with an average 0.7 point for the week ending Dec. 6, 2012, up from last week when it averaged 3.32 percent. Last year at this time, the 30-year FRM averaged 3.99 percent. Also this week, the 15-year FRM averaged 2.67 percent with an average 0.6 point, up from last week when it averaged 2.64 percent. A year ago at this time, the 15-year FRM averaged 3.27 percent.
"Mortgage rates were little changed and near record lows this week amid indicators of stronger economic growth and signs of tame inflation," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Third quarter real GDP growth was revised from an initial report of 2.0 percent to 2.7 percent, nearly matching the market consensus forecast. Meanwhile, the 12-month growth rate of the core price index of consumer expenditures remained at 1.7 percent in October which is on the low end of the Federal Reserve's projection range for this year."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.69 percent this week with an average 0.6 point, down from last week when it averaged 2.72 percent. A year ago, the five-year ARM averaged 2.93 percent. The one-year Treasury-indexed ARM averaged 2.55 percent this week with an average 0.4 point, down from last week when it averaged 2.56. At this time last year, the one-year ARM averaged 2.80 percent.
"The housing market is aiding in this recovery," said Nothaft. "For instance, fixed residential investment added positive growth over the past six consecutive quarters and in the third quarter alone contributed 0.3 percentage points to real GDP growth. In addition, residential construction spending was up three percent between September and October. And, pending home sales saw a 5.2 percent increase in October to its highest reading since March 2007."