July 3, 2009

Freddie Mac: Weekly Update

Lower Long Term Rates Help Housing Market

30-year fixed-rate mortgage: Averaged 5.32 percent with an average 0.7 point for the week ending July 2, 2009, down from last week when it averaged 5.42 percent. Last year at this time, the 30-year FRM averaged 6.35 percent.

The 15-year fixed-rate mortgage this week: Averaged 4.77 percent with an average 0.7 point, down from last week when it averaged 4.87 percent. A year ago at this time, the 15-year FRM averaged 5.92 percent.

Five-year Treasury-indexed hybrid ARMs: Averaged 4.88 percent this week, with an average 0.7 point, down from last week when it averaged 4.99 percent. A year ago, the 5-year ARM averaged 5.78 percent.

One-year Treasury-indexed ARMs: Averaged 4.94 percent this week with an average 0.6 point, up slightly from last week when it averaged 4.93 percent. At this time last year, the 1-year ARM averaged 5.17 percent.

Freddie Sayz
Lower mortgage rates are helping to support the housing market, said Frank Nothaft, Freddie Mac chief economist. The 30 year fixed-rate mortgage rate peaked this year over the week of June 11 and are now around a quarter-of-a-percentage point lower this week. This has led to a 7.2 percent increase in conventional mortgage applications for home purchases by the last full week of June, according to the Mortgage Bankers Association.

Howard Bell
A web site of over 450 articles related to real estate focused primarily on property management.

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