Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed-rate mortgages (FRMs) falling for the fifth consecutive week and hitting new 2014 lows. The 30-year FRM averaged 4.12 percent with an average 0.6 point for the week ending May 29, 2014, down from last week when it averaged 4.14 percent. A year ago at this time, the 30-year FRM averaged 3.81 percent. The average for the 30-year rate is at its lowest point since the week of Oct. 31, 2013. Also this week, the 15-year FRM averaged 3.21 percent with an average 0.5 point, down from last week when it averaged 3.25 percent. A year ago at this time, the 15-year FRM averaged 2.98 percent.
"Fixed mortgage rates eased a bit for the fifth consecutive week as reports that existing home sales are up 1.3 percent but not as much as expected," said Frank Nothaft, vice president and chief economist, Freddie Mac. "However, new home sales rose 6.4 percent in April to a seasonally adjusted annual rate of 433,000, which followed an upward revision of 11,000 units for the prior two months."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week with an average 0.3 point, unchanged from last week. A year ago, the five-year ARM averaged 2.66 percent. The one-year Treasury-indexed ARM averaged 2.41 percent this week with an average 0.4 point, down from last week when it averaged 2.43 percent. At this time last year, the one-year ARM averaged 2.54 percent.
"As the spring homebuying season continues, we see stronger consumer confidence as house prices remain on the rise," said Nothaft. "The Conference Board reported that confidence among consumers rose in May after dipping in April. Meanwhile, the S&P/Case-Shiller 20-city composite index rose 0.9 percent in March, above the consensus forecast."