Freddie Mac (OTC: FMCC) yesterday
released the results of its Primary Mortgage Market Survey (PMMS),
showing fixed mortgage rates following bond yields lower to new
all-time record lows. The 30-year fixed averaged 3.75 percent
setting a new all-time record low for the fifth consecutive week.
The 15-year fixed averaged an unprecedented 2.97 percent bringing
three of the four benchmark mortgage rates below 3 percent for the
first time in Freddie Mac's weekly survey.
News Facts
-
30-year fixed-rate mortgage (FRM) averaged 3.75 percent with
an average 0.8 point for the week ending May 31, 2012, down from
last week when it averaged 3.78 percent. Last year at this time,
the 30-year FRM averaged 4.55 percent.
-
15-year FRM this week averaged 2.97 percent with an average
0.7 point, down changed from last week when it averaged 3.04
percent. A year ago at this time, the 15-year FRM
averaged 3.74 percent.
-
5-year Treasury-indexed hybrid adjustable-rate mortgage
(ARM) averaged 2.84 percent this week, with an average 0.6
point, up from last week when it averaged 2.83. A year ago, the
5-year ARM averaged 3.41 percent.
-
1-year Treasury-indexed ARM averaged 2.75 percent this week
with an average 0.4 point, unchanged from last week. At this
time last year, the 1-year ARM averaged 3.13 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.
- "Market concerns over tensions in the Eurozone led to a
decline in long-term Treasury bond yields helping to bring fixed
mortgage rates to new record lows this week. Compared to a year
ago, rates on 30-year fixed mortgage rates are almost 0.9
percentage points lower which translates into nearly $1,200 less
in annual payments on a $200,000 loan. Meanwhile, the
S&P/Case-Shiller 20-city composite home price
index (not seasonally adjusted) showed annual home-value
gains in March in seven cities and a monthly gain in 12 cities."
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