Fixed-Rate Mortgages Begin Rise and Stand at 3.51 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed-rate mortgages following U.S. Treasury bond yields higher this week on signs of stronger consumer spending. This week, the 30-year fixed-rate mortgage (FRM) averaged 3.51 percent with an average 0.7 point for the week ending May 16, 2013, up from last week when it averaged 3.42 percent. Last year at this time, the 30-year FRM averaged 3.79 percent. The 15-year FRM this week averaged 2.69 percent with an average 0.7 point, up from last week when it averaged 2.61 percent. A year ago at this time, the 15-year FRM averaged 3.04 percent. "Advanced retail sales rose 0.1 percent in April, above the market forecast consensus of a 0.3 percent decline. Excluding such items as automobiles and gasoline, sales were up 0.5 percent for the second time in three months," said Frank Nothaft, vice president and chief economist, Freddie Mac. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.62 percent this week with an average 0.5 point, up from last week when it averaged 2.58 percent. A year ago, the five-year ARM averaged 2.83 percent. The one-year Treasury-indexed ARM averaged 2.55 percent this week with an average 0.4 point, up from last week when it averaged 2.53 percent. At this time last year, the one-year ARM averaged 2.78 percent.