Fixed Rates Dip to 4.31 Percent and Drop for the Second Consecutive Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates easing for the second consecutive week, as the 30-year fixed-rate mortgage (FRM) averaged 4.31 percent with an average 0.8 point for the week ending July 25, 2013, down from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 3.49 percent. Also this week, the 15-year FRM averaged 3.39 percent with an average 0.8 point, down from last week when it averaged 3.41 percent. A year ago at this time, the 15-year FRM averaged 2.80 percent.  "Mortgage rates eased for the second consecutive week which should help to alleviate market concerns of a slowdown in the housing market," said Frank Nothaft, vice president and chief economist of Freddie Mac. "Thus far, existing home sales for June were the second highest since November 2009 and new home sales were the strongest since May 2008. In addition, the low inventories of homes for purchase are putting upward pressure on house prices. For instance, the FHFA purchase-only house price index increased for the 16th consecutive month in May and was 7.3 percent above the May 2012 figure; May's index level was the highest since September 2008." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.16 percent this week with an average 0.7 point, down from last week when it averaged 3.17 percent. A year ago, the five-year ARM averaged 2.74 percent. The one-year Treasury-indexed ARM averaged 2.65 percent this week with an average 0.4 point, down from last week when it averaged 2.66 percent. At this time last year, the one-year ARM averaged 2.71 percent.