Little Change Seen in US Mortgage Rates This Week
Location: McLean Freddie Mac (NYSE:FRE) yesterday released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.75 percent with an average 0.7 point for the week ending June 17, 2010, up from last week when it averaged 4.72 percent. Last year at this time, the 30-year FRM averaged 5.38 percent. The 15-year FRM this week averaged 4.20 percent with an average 0.7 point, up from last week when it averaged 4.17 percent. A year ago at this time, the 15-year FRM averaged 4.89 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.89 percent this week, with an average 0.7 point, down from last week when it averaged 3.92 percent. A year ago, the 5-year ARM averaged 4.97 percent. This is the lowest the 5-year ARM has been since Freddie Mac started tracking it in January of 2005. The 1-year Treasury-indexed ARM averaged 3.82 percent this week with an average 0.6 point, down from last week when it averaged 3.91 percent. At this time last year, the 1-year ARM averaged 4.95 percent. This is the lowest the 1-year ARM has been since the week ending May 6, 2004 when it averaged 3.76 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) “Mortgage rates were little changed this week amid preliminary signs that the expiration of the homebuyer tax credit in April may have led to a slowdown in new construction,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Starts on single-family homes fell 17 percent to an annualized pace of 468,000 units in May from April’s 20-month high. In addition, permits on one-unit homes fell to the slowest pace since May 2009. Finally, builders became more pessimistic in their near-term outlook in June, according to the National Association of Home Builders/Wells Fargo Housing Market Index. “Nonetheless, household balance sheets have been improving over the past four quarters. In aggregate, households gained $6.3 trillion in net worth in the first quarter from a year ago, according to the Federal Reserve. In addition, homeowners have regained $1.1 trillion in home equity over the same time period.” Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. Summary of Survey Results
Primary Mortgage Market Survey Results
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. In general, the data presented were calculated from information collected Monday through Wednesday of the same week that the PMMS is released and may not reflect mortgage rates, fees or points currently available from any lender. Freddie Mac may change the methodology used to conduct the PMMS at any time and without notice.
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