U.S. Mortgage Rates Calm, Near Record Lows

 
Author: Chad Wandler
Location: McLean
Date: 2012-12-07

Freddie Mac (OTC: FMCC) yesterday released the results of its Primary Mortgage Market Survey® (PMMS®), showing fixed mortgage rates little changed and remaining near their record lows helping to keep homebuyer affordability high and attractive to those looking to refinance.

News Fac

  • 30-year fixed-rate mortgage (FRM) averaged 3.34 percent with an average 0.7 point for the week ending December 6, 2012, up from last week when it averaged 3.32 percent. Last year at this time, the 30-year FRM averaged 3.99 percent.
  • 15-year FRM this week averaged 2.67 percent with an average 0.6 point, up from last week when it averaged 2.64 percent. A year ago at this time, the 15-year FRM averaged 3.27 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.69 percent this week with an average 0.6 point, down from last week when it averaged 2.72 percent. A year ago, the 5-year ARM averaged 2.93 percent.
  • 1-year Treasury-indexed ARM averaged 2.55 percent this week with an average 0.4 point, down from last week when it averaged 2.56. At this time last year, the 1-year ARM averaged 2.80 percent.

 

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

"Mortgage rates were little changed and near record lows this week amid indicators of stronger economic growth and signs of tame inflation. Third quarter real GDP growth was revised from an initial report of 2.0 percent to 2.7 percent, nearly matching the market consensus forecast.  Meanwhile, the 12-month growth rate of the core price index of consumer expenditures remained at 1.7 percent in October which is on the low end of the Federal Reserve's projection range for this year.

"The housing market is aiding in this recovery. For instance, fixed residential investment added positive growth over the past six consecutive quarters and in the third quarter alone contributed 0.3 percentage points to real GDP growth. In addition, residential construction spending was up 3 percent between September and October. And, pending home sales saw a 5.2 percent increase in October to its highest reading since March 2007."

 

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