Fixed-Rates Dip for the Fifth Consecutive Week and Inch Closer to the 3.30 Percent Mark
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates moving lower for the fifth consecutive week amid the weaker than expected first quarter economic growth advance estimate. This week, the 30-year fixed-rate mortgage dropped to 3.35 percent is hovering just above its all-time record low of 3.31 percent set the week of Nov. 21, 2012, with an average 0.7 point for the week ending May 2, 2013, down from last week when it averaged 3.40 percent. Last year at this time, the 30-year FRM averaged 3.84 percent. Also this week, the 15-year fixed-rate mortgage set a new all-time record low at 2.56 percent, eclipsing the record set last week. A year ago at this time, the 15-year FRM averaged 3.07 percent. "Mortgage rates eased somewhat following the release of the advance estimate of real GDP growth for the first quarter of the year, which rose 2.5 percent but fell short of the market consensus forecast. The latest GDP report confirmed that the housing sector has become an important contributor to the economic recovery,” said Frank Nothaft, vice president and chief economist of Freddie Mac. “Residential fixed investment added to overall economic growth over the past eight consecutive quarters and contributed more than 0.3 percentage points in growth over the first three months of this year. Moreover, near record low mortgage rates should further drive the housing market recovery over the near term." Also this week, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.56 percent, with an average 0.5 point, down from last week when it averaged 2.58 percent. A year ago, the five-year ARM averaged 2.85 percent. The one-year Treasury-indexed ARM averaged 2.56 percent, with an average 0.3 point, down from last week when it averaged 2.62 percent. At this time last year, the one-year ARM averaged 2.70 percent.