Average Mortgage Rates Ease Setting New Record Lows
Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates dropping to new all-time record lows as data on economic growth fell short of market projections. All products in the PMMS survey, except the 1-Year ARM, averaged new lows.
News Facts
- 30 year fixed mortgages (FRM) averaged 3.87 percent with an average 0.8 point for the week ending February 2, 2012, down from last week when it averaged 3.98 percent. Last year at this time, the 30-year FRM averaged 4.81 percent.
- 15 year fixed mortgages this week averaged 3.14 percent with an average 0.8 point, down from last week when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 4.08 percent.
- 5 Year ARMs averaged 2.80 percent this week, with an average 0.7 point, down from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 3.69 percent.
- 1 Year ARMs averaged 2.76 percent this week with an average 0.6 point, up from last week when it averaged 2.74 percent. At this time last year, the 1-year ARM averaged 3.26 percent.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. 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.
- “Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections. The Gross Domestic Product rose 2.8 percent in the final three months of 2011, below the market consensus forecast of 3.0 percent, while consumer spending in December was flat. One bright spot, however, was that fixed residential investment increased for the third consecutive quarter and residential construction spending rebounded in December, rising 0.7 percent.”
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
SOURCE: Freddie Mac
About Freddie Mac’s Primary Mortgage Market Survey
Beginning in April 1971, Freddie Mac’s Primary Mortgage Market Survey® (PMMS®) has contacted lenders each week asking the rates and points for their most popular mortgage products which now include the 30 year fixed mortgage, 15 year fixed mortgage, 5 Year ARM and 1 year ARM. The survey is based on first-lien prime conventional conforming mortgages with a loan-to-value of 80 percent.
Currently, Freddie Mac surveys about 125 lenders each week consisting of thrifts, credit unions, commercial banks and mortgage lending companies in roughly the same proportion each type of lender commands in business in the mortgage marketplace.
The survey is conducted Monday – Wednesday with the results posted on Thursdays. Average rates and points (and margin for ARMs) for each product are reported for the nation and the five Freddie Mac regions.
PMMS results have evolved into the foremost representative source of regional and national mortgage rate trends and are relied upon by the mortgage industry and the public in gauging market conditions and evaluating mortgage loan options.
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