The 30-year fixed-rate mortgage (FRM) in the US averaged 4.72 percent, having an average 0.7 point for the week that ended 10 June 2010, down from last week’s 4.79 percent, according to Freddie Mac’s Primary Mortgage Market Survey.
For the same week, the 15-year FRM was 4.17 percent, with an average 0.7 point, down from last week’s 4.20 percent. At this time last year, it averaged 5.06 percent. The mortgage loan has not been lower since the company began tracking the 15-year FRM in August 1991 and sets a record low for the fourth consecutive week.
Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) hit 3.92 percent, with an average 0.7 point down from last week’s 3.94 percent.
This week, the 1-year Treasury-indexed ARM reached 3.91 percent, with an average 0.6 point down from 3.95 percent in the previous week. It has not been lower since it averaged 3.87 percent for the week that ended May 27, 2004.
“Following a relatively weak employment report, bond yields fell this week and mortgage rates followed,” said Frank Nothaft, chief economist and vice-president of Freddie Mac. “Private payrolls rose by 41,000 jobs in May, less than a quarter of the market forecast consensus of an 180,000 gain. Interest rates on 30-year fixed mortgage hover near the record low set on December 3, 2009 in our survey; the Primary Mortgage Market Survey began in April 1971. Meanwhile, rates on 15-year fixed mortgages set another record low for the fourth week in a row.”
“Overall, the economy does show signs of improvement. The Federal Reserve reported in its June 9th regional economic review that the economy strengthened in all 12 of its Districts over April and May. It also noted that loan quality was stable or improving in most Districts, but remained an issue for banks with large exposure to real estate,” he added.