Record-Setting Low U.S. Fixed Mortgage Rates Persist
Author:
Chad Wandler
Location: McLean
Date: 2012-06-08
Freddie Mac (OTC: FMCC) yesterday released the results of its
Primary Mortgage Market Survey (PMMS), showing average fixed mortgage
rates falling to new all-time record lows for the sixth consecutive week
amid weak economic and job data helping to keep homebuyer affordability
high.
News Facts
30-year fixed-rate mortgage (FRM) averaged 3.67 percent with an
average 0.7 point for the week ending June 7, 2012, down from last week
when it averaged 3.75 percent. Last year at this time, the 30-year FRM
averaged 4.49 percent.
15-year FRM this week averaged 2.94 percent with an average 0.7
point, down from last week when it averaged 2.97 percent. A year ago at
this time, the 15-year FRM averaged 3.68 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM)
averaged 2.84 percent this week, with an average 0.7 point, the same as
last week. A year ago, the 5-year ARM averaged 3.28 percent.
1-year Treasury-indexed ARM averaged 2.79 percent this week with an
average 0.4 point, up from last week when it averaged 2.75 percent. At
this time last year, the 1-year ARM averaged 2.95 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.
"Fixed mortgage rates reached new record lows for the sixth consecutive
week as long-term Treasury bond yields declined further following
downwardly revised economic growth and job creation data.
Gross domestic product rose 1.9 percent in the first quarter, after
originally being reported as 2.2 percent, led by gains in inventories,
more government cutbacks and the slowest increase in corporate profits
in over three years. In addition, the economy added 69,000
jobs in May, less than half of the market consensus forecast and
revisions subtracted a total of 49,000 workers in March and April.
Lastly, the unemployment rate ticked up from 8.1 percent in April to 8.2
percent."
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