Fixed-Rates Drop for the First Time in a Month to 3.51 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates moving lower after being largely unchanged over the past month, as the 30-year fixed-rate mortgage (FRM) averaged 3.51 percent with an average 0.8 point for the week ending Feb. 28, 2013, down from last week when it averaged 3.56 percent. Last year at this time, the 30-year FRM averaged 3.90 percent. Also this week, the 15-year FRM averaged 2.76 percent with an average 0.8 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.17 percent. "Mortgage rates eased somewhat as the consumer price index in February held steady for the second month in a row," said Frank Nothaft, vice president and chief economist, Freddie Mac. "House price indicators, however, showed gains in 2012. The S&P/Case-Shiller national home price index rose 7.3 percent last year, reflecting the largest four-quarter growth since the third quarter of 2006. This, in part, was a driving force that pushed up the number of existing and new home sales in February to the highest levels since July 2007 and July 2008, respectively." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.61 percent this week with an average 0.6 point, down from last week when it averaged 2.64 percent. A year ago, the five-year ARM averaged 2.83 percent. The one-year Treasury-indexed ARM averaged 2.64 percent this week with an average 0.4 point, down from last week when it averaged 2.65 percent. At this time last year, the one-year ARM averaged 2.72 percent.