June 22, 2012 (Shirley Allen)
Worsening economic news from home and abroad kept Treasury bonds near their all-time lows which resulted in mortgage interest rates falling across the board in the last week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending June 21st.
Fixed Rate Mortgages:
Interest rates on fixed rate mortgages declined last week with the 30-year fixed rate averaging 3.65 percent with an average of 0.7 points, down from last week’s average of 3.71 percent. A year ago, the 30-year fixed rate mortgage averaged 4.50 percent.
The 15-year fixed rate mortgage fell to 2.95 percent with an average of 0.6 points, down from last week’s average of 2.98 percent. At this time last year, the 15-year fixed rate mortgage averaged 3.69 percent.
Adjustable Rate Mortgages:
Interest rates for adjustable mortgages also fell last week with the 5-year Treasury-indexed hybrid ARM averaging 2.77 percent, with an average of 0.6 points, down from last week’s average of 2.80 percent. The 5-year adjustable rate mortgage averaged 3.25 percent a year earlier.
The 1-year Treasury-indexed adjustable rate mortgage averaged 2.74 percent with an average of 0.5 points, down from last week’s average of 2.78 percent. A year ago, the 1-year adjustable rate mortgage averaged 2.99 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Treasury bond yields eased somewhat this week on some worsening economic indicators bringing mortgage rates back into record low territory. Industrial production fell in two of the last three months ending in May, and below the expected market consensus forecast. In addition, consumer sentiment fell in June to its lowest level this year, according to the University of Michigan survey. In its June 20th monetary policy announcement, the Federal Reserve also noted growth in employment has slowed in recent months and household spending appears to be rising at a somewhat slower pace.”
30-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
---|---|---|---|---|---|---|
Average | 3.66 | 3.70 | 3.68 | 3.65 | 3.68 | 3.62 |
Fees & Points | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.8 |
15-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
---|---|---|---|---|---|---|
Average | 2.95 | 2.97 | 2.96 | 2.96 | 2.96 | 2.92 |
Fees & Points | 0.6 | 0.7 | 0.7 | 0.6 | 0.6 | 0.7 |
5/1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
---|---|---|---|---|---|---|
Average | 2.77 | 2.71 | 2.83 | 2.90 | 2.71 | 2.75 |
Fees & Points | 0.6 | 0.7 | 0.6 | 0.5 | 0.7 | 0.7 |
Margin | 2.74 | 2.74 | 2.75 | 2.73 | 2.76 | 2.74 |
1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
---|---|---|---|---|---|---|
Average | 2.74 | 2.86 | 2.75 | 2.66 | 2.73 | 2.70 |
Fees & Points | 0.5 | 0.6 | 0.5 | 0.4 | 0.5 | 0.4 |
Margin | 2.76 | 2.78 | 2.78 | 2.73 | 2.77 | 2.75 |
The National Mortgage Rate Snapshot | One Year Ago | One Week Ago | ||||||
---|---|---|---|---|---|---|---|---|
30-YR | 15-YR | 5/1-YR | 1-YR ARM | 30-YR | 15-YR | 5/1-YR | 1-YR ARM | |
Average | 4.50 | 3.69 | 3.25 | 2.99 | 3.71 | 2.98 | 2.80 | 2.78 |
Fees & Points | 0.8 | 0.7 | 0.6 | 0.5 | 0.7 | 0.7 | 0.6 | 0.5 |
Margin | N/A | N/A | 2.74 | 2.76 | N/A | N/A | 2.74 | 2.76 |
Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury
Source:
Freddie Mac