July 10, 2011

Freddie Mac Weekly Update: 30-Year Fixed-Rate Mortgage Rises to 4.60 Percent

30-year fixed-rate mortgage:averaged 4.60 percent with an average 0.7 point for the week ending July 7, 2011, up from last week when it averaged 4.51 percent. Last year at this time, the 30-year FRM averaged 4.57 percent.  

The 15-year fixed-rate mortgage:averaged 3.75 percent with an average 0.7 point, up from last week when it averaged 3.69 percent. A year ago at this time, the 15-year FRM averaged 4.07 percent.  

Five-year indexed hybrid adjustable-rate mortgages ARMs: averaged 3.30 percent this week, with an average 0.6 point, up from last week when it averaged 3.22 percent. A year ago, the 5-year ARM averaged 3.75 percent.

One-year Treasury-indexed ARMs: averaged 3.01 percent this week with an average 0.6 point, up from last week when it averaged 2.97 percent. At this time last year, the 1-year ARM averaged 3.75 percent.   .

Freddie Sayz
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac
Mortgage rates followed Treasury yields higher over the holiday week but remain quite affordable by historical standards. For instance, interest rates on all mortgages outstanding in the first quarter of this year averaged just under 6 percent. With today's rates, these homeowners who have the ability to refinance could shave $169 per month in interest payments on a $200,000, 30-year fixed mortgage

Mortgage Bankers Weekly Survey: Mortgage Applications Decrease


Fixed rate mortgages are changed little this week, at 4.5%.

The MBAA reports their Market Composite Index: (Loan application volume)  decreased 5.2 percent on a seasonally adjusted basis from one week earlier.
Their Refinance Index: decreased 9.2 percent from the previous week and for the last three weeks. However,Mortgage applications also decreased 5.9% from one week earlier The MBAA reports their Purchase Indexincreased 4.4 percent compared with the previous week and was 11.7 percent higher than the same week one year ago.
Key to better numbers is growth, especially job growth. The MBAA forecasts a slower, but positive growth situation. 4th quarter 2010 GDP growth was 3.1%. After a dip to 1.8% this quarter, they see growth through 2012 largely around 2.8%. Not likely a strong scenario for enough job growth to help the housing markets push forward. 
Confirming the trend is the MBAA mortgage orgination forec