Fixed-Rate Mortgages Continue to Drop to Near 3.4 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates edging down for the second consecutive week following weak employment reports, as the 30-year fixed-rate mortgage (FRM) averaged 3.43 percent with an average 0.8 point, down from last week when it averaged 3.54 percent. Last year at this time, the 30-year FRM averaged 3.88 percent. Also this week, the 15-year FRM averaged 2.65 percent with an average 0.7 point, down from last week when it averaged 2.74 percent. A year ago at this time, the 15-year FRM averaged 3.11 percent. "Mortgage rates fell further this week following a lackluster employment report for March," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The economy added just 88,000 net new jobs last month, about one-third as many as February and the fewest since June 2012. In addition, approximately 496,000 people left the workforce causing the unemployment rate to fall to 7.6 percent. Further, average hourly earnings were unchanged in March, indicating income growth remains tepid." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.62 percent this week with an average 0.5 point, down from last week when it averaged 2.65 percent. A year ago, the five-year ARM averaged 2.85 percent. The one-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.3 point, down from last week when it averaged 2.63 percent. At this time last year, the one-year ARM averaged 2.80 percent.