Freddie Mac Weekly Update: Fixed-Rate Mortgages Hit a New Year To Date Low

30-year fixed-rate mortgage:averaged 4.61 percent with an average 0.7 point for the week ending May 19, 2011, down  from last week when it averaged 4.63 percent. Last year at this time, the 30-year FRM averaged 4.84 percent 
The 15-year fixed-rate mortgage: this week  averaged 3.80 percent with an average 0.7 point, down  from last week when it averaged 3.82 percent.  A year ago at this time, the 15-year FRM averaged 4.24 percent.  

Five-year indexed hybrid adjustable-rate mortgages ARMs: averaged 3.48 percent this week, with an average 0.6 point ,  up from last week when it averaged 3.41 percent. A year ago, the 5-year ARM averaged 3.91 percent .

One-year Treasury-indexed ARMs: averaged 3.15 percent this week with an average 0.6 point, upfrom last week when it averaged 3.11 percent. At this time last year, the 1-year ARM averaged 4.00 percent.  

Freddie Sayz

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac

Fixed mortgage rates inched down for the fifth consecutive week as financial markets try to ascertain the current strength of the economy.  Industrial production  was unchanged in April owing to disruptions in automobile parts supplies due to the earthquake and tsunami in Japan. Netting out automobiles and gasoline,  retail sales  rose 0.2 percent in April, which was less than a third of the increase in March and the weakest growth since December 2010. However,consumer confidence, as measured by the University of Michigan, rose above the market consensus in May to the highest reading since February 
Data on the housing market was also mixed.  New construction  on single-family homes fell 5.1 percent in April, with the largest declines occurring in the Midwest and South regions where tornados hit the hardest. Homebuilder confidence remained unchanged in May and near its January 2009 historical low, according to the  NAHB/Wells Fargo Housing Market Index. However,conventional mortgages applications rose for the past five straight weeks ending May 13th, buoyed by lower mortgage rates and stronger refinancing activity

Freddie Mac Weekly Update: Fixed-Rate Mortgages Hit a New Year To Date Low

30-year fixed-rate mortgage:averaged 4.61 percent with an average 0.7 point for the week ending May 19, 2011, down  from last week when it averaged 4.63 percent. Last year at this time, the 30-year FRM averaged 4.84 percent 
The 15-year fixed-rate mortgage: this week  averaged 3.80 percent with an average 0.7 point, down  from last week when it averaged 3.82 percent.  A year ago at this time, the 15-year FRM averaged 4.24 percent.  

Five-year indexed hybrid adjustable-rate mortgages ARMs: averaged 3.48 percent this week, with an average 0.6 point ,  up from last week when it averaged 3.41 percent. A year ago, the 5-year ARM averaged 3.91 percent .

One-year Treasury-indexed ARMs: averaged 3.15 percent this week with an average 0.6 point, upfrom last week when it averaged 3.11 percent. At this time last year, the 1-year ARM averaged 4.00 percent.  

Freddie Sayz

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac

Fixed mortgage rates inched down for the fifth consecutive week as financial markets try to ascertain the current strength of the economy.  Industrial production  was unchanged in April owing to disruptions in automobile parts supplies due to the earthquake and tsunami in Japan. Netting out automobiles and gasoline,  retail sales  rose 0.2 percent in April, which was less than a third of the increase in March and the weakest growth since December 2010. However,consumer confidence, as measured by the University of Michigan, rose above the market consensus in May to the highest reading since February 
Data on the housing market was also mixed.  New construction  on single-family homes fell 5.1 percent in April, with the largest declines occurring in the Midwest and South regions where tornados hit the hardest. Homebuilder confidence remained unchanged in May and near its January 2009 historical low, according to the  NAHB/Wells Fargo Housing Market Index. However,conventional mortgages applications rose for the past five straight weeks ending May 13th, buoyed by lower mortgage rates and stronger refinancing activity

Mortgage Bankers Weekly Survey: Mortgage Refinance Applications Increase

Mortgage Bankers Association for the week of 5/18/2010

Fixed rate mortgages continue to decline this week, with the 30-year loan averaging 4.61% its lowest average this year. The MBAA reports their  Market Composite Index: (loan application volume) increased 7.8 percent. 

Their Refinance Index:  increased 13.2 percent from the previous week and is at its highest level since the week ending December 10, 2010. Rates continue to decline and people are taking advantage of low rates.
However, this isnt helping sell homes.  Mortgage applications increased 7.8 percent from one week earlier, according to data from the Mortgage Bankers Associations Weekly Mortgage The MBAA reports their  Purchase Index:  increased 1.1 percent compared with the previous week and was 36.9 percent lower than the same week one year ago. However Refinance Index did increase by 3% to 66.7%
Although low rates are not translating into many home sales, I do think these refis are helping people fix their personal balance sheets and hopefully, this is keeping some people out of the foreclosure cycle

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Freddie Mac Weekly Update: 30-year Fixed-Rate Mortgage Matches Yearly Low of 4.71%

30-year fixed-rate mortgage:
averaged 4.78 percent with an averaged 4.71 percent with an average 0.7 point for the week ending May 5, 2011, down from last week when it averaged 4.78 percent. Last year at this time, the 30-year FRM averaged 5.00 percent. .

The 15-year fixed-rate mortgage: this week averaged 3.89 percent with an average 0.7 point, down from last week when it averaged 3.97 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: averaged 3.47 percent this week, with an average 0.6 point, down from last week when it averaged 3.51 percent. A year ago, the 5-year ARM averaged 3.97 percent .

One-year Treasury-indexed ARMs: averaged 3.14 percent this week with an average 0.5 point, down from last week when it averaged 3.15 percent. At this time last year, the 1-year ARM averaged 4.07 percent.

Freddie Sayz
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac

Weaker economic data reports reduced Treasury bond yields and allowed mortgage rates to drift lower for the third consecutive week. For instance, real economic growth in the first quarter fell short of the market consensus forecast and represented the slowest pace since the second quarter of 2010. In addition, both the manufacturing and service sectors exhibited growth at a slower rate in April.

Data reports on the housing market, on the other hand, were a little more uplifting. The National Association of Realtors reported pending home sales rose in March for the second month in a row to the highest index reading since November 2010. Also, the Federal Reserve reported credit standards among commercial banks for prime mortgages were unchanged on net in the second quarter of the year, following two quarters of tightening

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Mortgage Bankers Association for the week of 5/04/2010

Market Composite Index: (loan application volume) decreased 5.6 percent from one week earlier

Refinance Index: increased 6.0 percent from the previous week

Purchase Index: increased 1.1 percent compared with the previous week and was 36.9 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: increased to 62.7 percent of total applications from 61.6 percent the previous week.

MBA outlook:

The MBAA expects rate to rise this year, largely due to the Fed announcement that they will begin to back away from their mortgage buyback program, allowing the markets to begin to price the cost of loans. This is a hit to affordability and will likely impact sales a bit.


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