Monday, July 26, 2010

30-Year & 15-Year Fixed Mortgage Rates at Record Lows!

Freddie Mac has released the results of its Primary Mortgage Market Survey® (PMMS®), with the 30-year and 15-year fixed-rate mortgages reaching record lows for this survey. (The 30-year fixed-rate survey began in 1971, and the 15-year began in 1991.)

30-year fixed-rate mortgage (FRM) averaged 4.56 percent. At this time last year the 30-year FRM averaged 5.20 percent.

15-year FRM this week averaged a record low of 4.03 percent. At this time last year the 15-year FRM averaged 4.68 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.79 percent. At this time last year the 5-year ARM averaged 4.74 percent.

1-year Treasury-indexed ARM averaged 3.70 percent this week. At this time last year the 1-year ARM averaged 4.77 percent.

"The decline in mortgages rates over the past few weeks echoes the recent signs of weakening confidence in the strength of the economy, particularly the housing and consumer sectors. For example, homebuilder confidence declined in July to lows not seen since April 2009, as measured by the NAHB/Wells Fargo Housing Market Index, following the large drop in housing starts reported for June. Similarly, July's consumer confidence dropped to the lowest level since August 2009, based on the Reuters/University of Michigan's Consumer Sentiment index. We see these as part of the normal pattern of ebbs and flows in recovery and believe that there is sufficient momentum to carry the U.S. economy forward, albeit moderately."

-Frank Nothaft, vice president and chief economist, Freddie Mac

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