Mortgage Rates Hit Seven-Month Low

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed-rate mortgages (FRMs) dipping further following a decline in Treasury yields as the economic growth for the first quarter came in well below market expectations. The 30-year FRM averaged 4.21 percent, with an average 0.6 point for the week ending May 8, 2014, down from last week when it averaged 4.29 percent. A year ago at this time, the 30-year FRM averaged 3.42 percent.  At 4.21 percent, the 30-year rate is at its lowest point since the week of Nov. 7, 2013. Also this week, the 15-year FRM averaged 3.32 percent with an average 0.6 point, down from last week when it averaged 3.38 percent. A year ago at this time, the 15-year FRM averaged 2.61 percent.    "Mortgage rates continued moving down following the decline in 10-year Treasury yields after a dismal report on real GDP growth in the first quarter," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Meanwhile, the economy added 288,000 jobs in April, the largest since January 2012, and followed an upward revision of 36,000 jobs for the prior two months. Also, the unemployment rate fell to 6.3 percent." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.05 percent this week with an average 0.5 point, unchanged from last week. A year ago, the five-year ARM averaged 2.58 percent. The one-year Treasury-indexed ARM averaged 2.43 percent this week with an average 0.4 point, down from last week when it averaged 2.45 percent. At this time last year, the one-year ARM averaged 2.53 percent.