US Mortgage Rates Drift Lower Amid Hopes of Market RecoveryLocation: McLean
The 15-year FRM this week
averaged 5.60 percent with an average 0.5 point, unchanged from last week
when it averaged 5.60 percent. A year ago at this time, the 15-year FRM
averaged 5.87 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.57 percent this week, with an average 0.6 point, downfrom last week when it averaged 5.67 percent. A year ago, the 5-year ARM averaged 5.89 percent. One-year Treasury-indexed ARMs averaged 5.18 percent this week with an average 0.7 point, down from last week when it was 5.29 percent. At this time last year, the 1-year ARM averaged 5.48 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) “Recent remarks by Federal Reserve (Fed) officials, which partly bolstered optimism that financial markets will recover later this year, helped mortgage rates ease up a little this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Fed Chairman Bernanke indicated in a speech on May 13th that the Fed stands ready to continue to add liquidity to the markets. On the same day, San Francisco Fed bank president Janet Yellen added that she anticipates inflation will slow as commodity prices level off in the second half of the year. “Despite the bleak housing market, there was positive news on the overall state of the economy. Retail sales (excluding automobiles) rose 0.5 percent in April, over twice that of market forecasts, and there was a significant upward revision in March’s figures as well. Also, the consumer price index for April rose less than expected, allaying some market concerns of inflation taking hold.”
PRIMARY MORTGAGE MARKET SURVEY RESULTS 30-YEAR FIXED RATE MORTGAGES
15-YEAR FIXED RATE MORTGAGES
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.75 2.77 2.76 2.77 2.77 2.73 1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.75 2.72 2.75 2.80 2.78 2.75 THE NATIONAL MORTGAGE RATE SNAPSHOT
Freddie Mac's Primary Mortgage Market Survey (PMMS) is for informational purposes only and Freddie Mac is not responsible for business decisions made based on the reported results of the PMMS. Freddie Mac may change the methodology used to conduct the PMMS survey at any time and without notice.
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