Mixed Indicators Leave Mortgage Rates Little Changed

October 27, 2011 (Shirley Allen)

Mixed market indicators left average mortgage rates unmotivated and virtually unchanged from the previous week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending October 27.

Fixed Rate Mortgages:

Fixed rate mortgage interest rates remained virtually unchanged from last week with the 30-year fixed rate mortgage averaging 4.10 percent with an average of 0.8 points, down from last week’s average of 4.11 percent. A year ago the 30-year fixed rate mortgage averaged 4.23 percent.

The 15-year fixed rate mortgage averaged 3.38 percent this week with an average 0.7 points, unchanged from the previous week, and down from 3.66 percent a year ago. Points last week averaged 0.8 percent.

Adjustable Rate Mortgages:

Adjustable rate mortgage interest rates were mixed again this week with the 5-year Treasury-indexed hybrid ARM averaging 3.08 percent, up from 3.01 percent last week, with an average of 0.5 points. The 5-year adjustable rate mortgage averaged 3.41 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage decreased this week, averaging 2.90 percent with an average of 0.6 points, down from 2.94 percent the previous week. A year ago, the 1 year adjustable rate mortgage averaged 3.30 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Fixed mortgage rates followed other long-term interest rates and showed little change, on average, from the prior week. The latest monthly housing market indicators were mixed, with consumer confidence soft, house prices largely flat, and new home sales up from very low levels.”

“Consumer confidence fell below the market consensus forecast in October to the lowest reading since March 2009, according to The Conference Board. The FHFA Purchase-Only House Price Index for the U.S. declined 0.1 percent in August on a seasonally adjusted basis, while the S&P/Case-Shiller® 20-city Composite home price index rose 0.2 percent (not seasonally adjusted) between July and August, with one-half of the cities registering a dip in values. Finally, new home sales increased 5.7 percent in September to the strongest pace since April,” he added.

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.10 4.09 4.15 4.11 4.14 4.06
Fees & Points 0.8 0.8 0.9 0.6 0.7 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.38 3.37 3.39 3.39 3.43 3.36
Fees & Points 0.7 0.7 0.8 0.5 0.7 0.8

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 3.08 3.11 3.03 3.25 3.18 2.94
Fees & Points 0.5 0.6 0.6 0.3 0.6 0.6
Margin 2.74 2.75 2.75 2.73 2.76 2.73

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.90 3.04 2.75 3.28 2.71 2.70
Fees & Points 0.6 0.8 0.6 0.3 0.6 0.5
Margin 2.76 2.79 2.75 2.73 2.77 2.75

The National Mortgage Rate Snapshot One Year Ago One Week Ago
  30-YR 15-YR 5/1-YR 1-YR ARM 30-YR 15-YR 5/1-YR 1-YR ARM
Average 4.23   3.66   3.41   3.30   4.11   3.38   3.01   2.94  
Fees & Points 0.8   0.7   0.6   0.7   0.8   0.8   0.6   0.6  
Margin N/A N/A 2.75   2.76   N/A N/A 2.74   2.76  

Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury

Source:
Freddie Mac