Fixed-Rate Mortgages Drop On Average to 4.29 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates moving down slightly following the release of real GDP estimates for the first quarter, as the 30-year fixed-rate mortgage (FRM) averaged 4.29 percent with an average 0.7 point for the week ending May 1, 2014, down from last week when it averaged 4.33 percent. A year ago at this time, the 30-year FRM averaged 3.35 percent. Also this week, the 15-year FRM averaged 3.38 percent with an average 0.6 point, down from last week when it averaged 3.39 percent. A year ago at this time, the 15-year FRM averaged 2.56 percent.  "Mortgage rates were down slightly following the release of real GDP estimates for the first quarter of the year which rose 0.1 percent and fell well short of market expectations," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Meanwhile, the pending home sales indexrose in March ending eight consecutive months of decline and the S&P/Case-Shiller 20-city composite house price index rose 12.9 percent over the 12-months ending in February 2014." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.05 percent this week with an average 0.4 point, up from last week when it averaged 3.03 percent. A year ago, the five-year ARM averaged 2.56 percent. The one-year Treasury-indexed ARM averaged 2.45 percent this week with an average 0.5 point, up from last week when it averaged 2.44 percent. At this time last year, the one-year ARM averaged 2.56 percent.