Fixed Rates Hold Steady at 3.5 Percent Range for Second Consecutive Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed-rate mortgages (FRMs) largely holding steady from the previous week, remaining near their 65-year record lows, as the 30-year FRM averaged 3.52 percent with an average 0.7 point for the week ending March 7, 2013, up from last week when it averaged 3.51 percent. Last year at this time, the 30-year FRM averaged 3.88 percent. The 15-year FRM averaged 2.76 percent with an average 0.7 point, the same as last week. A year ago at this time, the 15-year FRM averaged 3.13 percent. "With gross domestic product growing only 0.1 percent in the fourth quarter of 2012, inflation remains at bay and consequently mortgage rates low," said Frank Nothaft, vice president and chief economist, Freddie Mac. "In fact, the price index of personal consumption expenditures rose only 0.1 percent in January which was below the market consensus forecast. Moreover, these low mortgage rates are helping to revive the housing market. For instance the CoreLogic home price index rose 9.7 percent between January 2012 and 2013, marking the largest annual increase since April 2006." Also this week, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.63 percent with an average 0.5 point, up from last week when it averaged 2.61 percent. A year ago, the five-year ARM averaged 2.81 percent. The one-year Treasury-indexed ARM averaged 2.63 percent this week with an average 0.3 point, down from last week when it averaged 2.64 percent. At this time last year, the one-year ARM averaged 2.73 percent.