Rates Find New Lows
In Freddie Mac’s results of its Primary Mortgage Market Survey, the 30-year fixed-rate mortgage averaged 4.60 percent with an average 0.7 point for the week ending May 26, 2011, down from the previous week when it averaged 4.61 percent. Last year at this time, the 30-year FRM averaged 4.84 percent.
15-year FRM this week averaged 3.78 percent with an average 0.7 point, down from the previous week when it averaged 3.80 percent. A year ago at this time, the 15-year FRM averaged 4.21 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.41 percent this week, with an average 0.5 point, down from the previous week when it averaged 3.48 percent. A year ago, the 5-year ARM averaged 3.97 percent.
1-year Treasury-indexed ARM averaged 3.11 percent this week with an average 0.5 point, down from the previous week when it averaged 3.15 percent. At this time last year, the 1-year ARM averaged 3.95 percent.
Quotes attributed to Frank Nothaft, vice president and chief economist, Freddie Mac:
"Fixed mortgage rates eased slightly for the sixth consecutive week amid reports of slower economic activity. The index of leading indicators fell 0.3 percent in April and represented the first monthly decline since June 2010. In addition, the Federal Reserve banks reported less business and manufacturing activity in Philadelphia, Chicago and Richmond.
U.S. house prices indexes may be nearing a bottom soon. On a national basis, prices fell 0.3 percent between February and March, which was the smallest decline since November 2009, according to the Federal Housing Finance Agency. In addition, four of the nine Census Regions exhibited positive growth, compared to none in February. Separately, the Mortgage Bankers Association reported a further reduction in the serious delinquency rate (90 or more days plus foreclosures) in the first quarter, which stood at the lowest reading since the second quarter of 2009."