June 23, 2011

Freddie Mac Weekly Update: Mortgage Rates Unchanged at 4.50 Percent

30-year fixed-rate mortgage:averaged 4.50 percent with an average 0.8 point for the week ending June 23, 2011, unchanged from last week when it averaged 4.50 percent. Last year at this time, the 30-year FRM averaged 4.69 percent.  

The 15-year fixed-rate mortgage: averaged 3.69 percent with an average 0.7 point, up  from last week when it averaged 3.67 percent.  A year ago at this time, the 15-year FRM averaged 4.13 percent.        

Five-year indexed hybrid adjustable-rate mortgages ARMs: averaged 3.25 percent this week, with an average 0.6 point ,  down from last week when it averaged 3.27 percent. A year ago, the 5-year ARM averaged 3.84 percent .

One-year Treasury-indexed ARMs: averaged 2.99 percent this week with an average 0.5 point, up from last week when it averaged 2.97 percent. At this time last year, the 1-year ARM averaged 3.77 percent.  

Freddie Sayz
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac
Mortgage rates were virtually unchanged this week amid further indications of a soft housing market. Although  new construction  on single-family homes ticked up in May from April, it was still below the overall pace set in 2010. Moreover,  existing home sales  fell 3.8 percent in May to the fewest since November 2010.
The Federal Reserve  also reiterated that the housing sector continues to be depressed in its June 22nd policy committee statement.  The S&P/Case-Shiller National Home Price Index  fell 2.1 percent between the fourth quarter of 2010 and first quarter 2011. Based on a recent survey by  MarcoMarkets   of 108 professional forecasters taken in early June, the index is predicted to decline another 1.5 percent by the fourth quarter of this year

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